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Wanger Advisors Trust – ‘N-30D’ for 12/31/01

On: Friday, 3/1/02 · For: 12/31/01 · Accession #: 891804-2-495 · File #: 811-08748

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 3/01/02  Wanger Advisors Trust             N-30D      12/31/01    1:142K                                   Kelvyn Press Inc/FA

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Wanger Advisor Trust                                  46    265K 

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                                                              2001 Annual Report

                                     Wanger U.S. Small Cap
                                              Wanger International Small Cap
                             Wanger Twenty
                                    Wanger Foreign Forty

GRAPHIC:                                                                        

LOGO: Wanger Advisors Funds                                                     
managed by Liberty Wanger Asset Management, L.P.                                

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Logo: Squirrel                                                                  
WANGER ADVISORS FUNDS                                               
2001 ANNUAL REPORT                                                  

Contents                                                                

2  Imposture Arraigned                                                        
4  Performance Review                                                         
Wanger U.S. Small Cap                                                   
6  Performance Review                                                         
Wanger International                                                    
Small Cap                                                               
8  Performance Review                                                         
Wanger Twenty                                                           
10  Performance Review                                                          
Wanger Foreign Forty                                                    
12  Statement of Investments                                                    
Wanger U.S. Small Cap                                                   
17  Statement of Investments                                                    
Wanger International                                                    
Small Cap                                                               
22  Portfolio Diversification                                                   
Wanger International                                                    
Small Cap                                                               
23  Statement of Investments                                                    
Wanger Twenty                                                           
25  Statement of Investments                                                    
Wanger Foreign Forty                                                    
27  Portfolio Diversification                                                   
Wanger Foreign Forty                                                    
28  Special Notice                                                              
30  Statements of Assets                                                        
and Liabilities                                                         
31  Statements of Operations                                                    
32  Statements of Changes in                                                    
Net Assets                                                              
34  Financial Highlights                                                        
Wanger U.S. Small Cap                                                   
35  Financial Highlights                                                        
Wanger International                                                    
Small Cap                                                               
36  Financial Highlights                                                        
Wanger Twenty                                                           
37  Financial Highlights                                                        
Wanger Foreign Forty                                                    
38  Notes to Financial Statements                                               
41  Report of Independent Auditors                                              
42  Management of Wanger                                                        
Advisors Trust                                                          

LIBERTY WANGER ASSET MANAGEMENT, L.P. ("WAM") IS ONE OF THE LEADING GLOBAL      
SMALL-CAP EQUITY MANAGERS IN THE U.S. WITH MORE THAN 30 YEARS OF SMALL-CAP      
INVESTMENT EXPERIENCE. WAM MANAGES MORE THAN $8.7 BILLION IN EQUITIES AND IS THE
INVESTMENT ADVISER TO WANGER U.S. SMALL CAP, WANGER INTERNATIONAL SMALL CAP,    
WANGER TWENTY, WANGER FOREIGN FORTY AND THE LIBERTY ACORN FAMILY OF FUNDS.      

FOR MORE COMPLETE INFORMATION ABOUT OUR FUNDS, INCLUDING THE LIBERTY ACORN      
FUNDS, OR OUR FEES AND EXPENSES, CALL 1-800-4-WANGER FOR A PROSPECTUS. READ IT  
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.                                      

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                                   Wanger Advisors Trust      2001 Annual Report
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IMPOSTURE ARRAIGNED                                                             

The Third Earl of Shaftesbury wrote of imposture in 1711, advice that was       
disregarded by the gullible in the South Sea Bubble of 1720. Today, his comments
could easily be applied to Enron.                                               

 "It is only in a free nation, such as ours, that imposture has no privilege
and that neither the credit of a court, the power of a nobility, or the   
awfulness of a church can give her protection or hinder her from being    
arraigned in every shape and appearance."                                 
- 1711, Anthony Ashley Cooper, Third Earl of Shaftesbury1                 

This has been a bad season for impostors. In recent weeks, Global Crossing,     
McLeod USA and Kmart have joined Enron in bankruptcy. These are four of the     
largest failures in financial history. Fund managers have gotten extraordinarily
skittish about the companies they follow. Many portfolio managers have seen     
their results clobbered when one of their big holdings dribbles away to nothing,
so the slightest hint of aggressive accounting causes them to dump a stock.     
After all, you might be excused for holding one stock that collapses, but more  
than that could be a career ender. As the fearsome Lady Bracknell put it, "To   
lose one parent, Mr. Worthing, may be regarded as a misfortune; to lose both    
looks like carelessness."2                                                      

Of the latest cohort of corporate calamities, the failure of Kmart affects more 
consumers, employees and suppliers than the others. Why has Enron hogged the    
spotlight? The answer seems to be the speed of the collapse, the alleged        
improper activity of the company management and auditor, the suicide of a former
top executive and the widespread political contributions Enron made.            

As everyone now knows, Enron made many side deals in the form of partnerships.  
No one of them by itself was significant enough to be forbidden but as a group  
these deals were of overwhelming importance. It's like termites in your floor;  
one doesn't eat much but a bunch will make your house collapse. If you see one  
termite, you have a herd of them. By putting losses and debt into suspicious    
outside partnerships, Enron made its own figures look better than they really   
were. Some of the flimflam was detectable. Our energy analyst Jason Selch       
identified some fuzzy accounting when looking at one of Enron's subsidiaries.   
Following is an excerpt from a letter Jason wrote on November 2, 2000. It was   
sent to a reporter with Dow Jones who covered Enron. He is writing about a water
utility controlled by Enron called Azurix. At the time, Azurix was planning to  
repurchase its public shares using a loan from Enron.                           

  "Analysts who have been told that Enron's exposure to Azurix is $487 million
   ($762 million book value less $275 million proceeds) should know its exposure
  is double that amount at $1.072 billion. Enron will have to explain its late
'98 transaction [formation of Marlin Water Trust, another side deal] which
enabled Enron to 1) hide $1.024 billion of debt with a current outstanding
  balance of $860 million and 2) to account for its investment in Azurix under
the equity method and not under the consolidated method."                 

"... it is possible that other parties such as the SEC or Enron's auditors
might look through the late '98 transaction and require that Enron restate
its financial statements for 1998, 1999, and 2000 ..."                    

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                                   Wanger Advisors Trust      2001 Annual Report
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Most investors don't have the experience that Jason has. As an owner of a Wanger
Advisors Fund, you can rely on our 19 analysts to do the research for you. The  
prospectus of the Wanger Advisors Funds warns about the risks of smaller        
companies,3 and there certainly are some, but small companies are generally less
complex than larger organizations. When making a decision whether or not to     
invest, we sit down with company management, look at company fundamentals and   
talk to the competition. We do our homework before putting our money into any   
stock. Our research is thorough and is designed to help us avoid a potential hot
potato like Enron.                                                              

Congress and the media have portrayed Enron's management as fools or knaves.    
They are accused of deliberately deceiving their employees and investors.       
They'll get a chance in court to explain their operating plan. Accountants and  
accounting standards are also receiving intense scrutiny. Some of the           
partnerships that Enron set up, if they passed the accounting tests, did so by  
being designed to match the letter of the law, just barely, while violating the 
spirit of the law egregiously.                                                  

Photo of:                                                                       
RALPH WANGER                                                                    
Chief Investment Officer,                                                       
Liberty Wanger Asset Management, L.P.                                           

--------------------------------------------------------------------------------

None of the Wanger Advisors Funds held shares in Global Crossing, McLeod USA,   
Kmart or Enron.                                                                 

1 From Characteristicks of Men, Manners, Opinions, Times, Etc., 1711.           

2 Wilde, Oscar, "The Importance of Being Earnest," 1895.                        

3 Smaller companies and mid-capitalization companies are more likely than larger
companies to have limited product lines, operating histories, market or         
financial resources. They may depend heavily on a small management team. Stocks 
of smaller companies and mid-capitalization companies may trade less frequently,
may trade in smaller volumes and may fluctuate more sharply in price than stocks
of larger companies. In addition, they may not be widely followed by the        
investment community, which can lower the demand for their stock.               

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                                   Wanger Advisors Trust      2001 Annual Report
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PERFORMANCE REVIEW     WANGER U.S. SMALL CAP                                    

Wanger U.S. Small Cap ended the year up 11.39%, strongly outperforming its      
benchmark, the Russell 2000, up 2.49%. Large caps lagged way behind small caps  
in 2001. The S&P 500 posted a decline of 11.89%.                                

Wanger U.S. Small Cap's outperformance can be largely attributed to a strong    
showing from Fund technology stocks. Employee time clock systems vendor Kronos  
punched in a 135% gain. We believe Kronos's revenue growth is superb and demand 
for its product continues to increase. JDA Software, a software and services    
provider for retailers, was up 71% for the 12 months. JDA Software dominates its
business segment. Micros Systems, a provider of hotel and restaurant software   
and systems, increased 38%. The hospitality industry was stunned by the         
September 11 atrocities but the industry is now recovering and Micros System's  
stock price has increased with it. Health claim and credit card processors      
NDCHealth and Global Payments also had good years. These stocks tend to move    
with the technology sector and benefit from having strong recurring revenues.   

September 11 caused most stocks to drop sharply. One exception was Wackenhut, a 
security company that more than doubled in 2001 as the nation's heightened      
emphasis on security fueled interest in the stock. ITT Educational Services     
ended the year up 67%, overcoming news of competitor DeVry's missed earnings.   
AmeriCredit was strong in the first half of the year but weakened in the second 
half, as the market grew nervous about the prospects for sub-prime lenders in a 
weak economy. The stock finished the year up 16%. We believe AmeriCredit remains
attractively valued and the credit quality fears are overblown.                 

On the downside for the year: Tektronix, a manufacturer of analytical           
instruments, fell by half as its main customer base, the semiconductor industry,
had its own problems. Novoste, a developer of radiated stents used in heart     
surgery, declined as drug-coated stents stole market share. Jason Selch, our    
energy analyst, was onto the problems at Enron but liked Dynegy, a competitor of
Enron's in the energy trading business. However, Dynegy's stock suffered        
collateral damage when Enron collapsed. The Enron bankruptcy leaves Dynegy as   
the major player in the energy trading business.                                

Wanger U.S. Small Cap, like our other funds, invests for the long term. We don't
try to jump in and out of the latest hot sector. Looking at companies one at a  
time, paying close attention to valuations, allowed us to do well in technology 
even though technology had a down year.                                         

Small-cap stocks are often more volatile and less liquid than the stocks of     
larger companies. Smaller companies may have a shorter history of operations    
than larger companies and may have a less diversified product line, making them 
more susceptible to market pressure.                                            

As of 12/31/01, the Fund's positions in the holdings mentioned were: Kronos,    
3.9%; JDA Software, 2.9%; Micros Systems, 2.2%; NDCHealth, 2.1%; Global         
Payments, 1.7%; Wackenhut, 2.0%; ITT Educational Services, 4.2%; AmeriCredit,   
4.4%; Tektronix, 1.5%; Novoste, 0.6%; Dynegy, 2.0%.                             

Photo of: ROBERT A. MOHN                                                        
Portfolio Manager                                                               

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                                   Wanger Advisors Trust      2001 Annual Report
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WANGER U.S. SMALL CAP                               RESULTS TO DECEMBER 31, 2001

THE VALUE OF A $10,000 INVESTMENT IN                                            
WANGER U.S. SMALL CAP                                                           

TOTAL RETURN FOR EACH PERIOD                                                    
MAY 3, 1995 THROUGH DECEMBER 31, 2001                                           

AVERAGE ANNUAL TOTAL RETURN                                         
---------------------------------------                                         
1 Year    3 Years   5 Years     Life                                        
11.39%     8.56%    12.47%     18.27%                                       

LINE CHART:                                                                     
WANGER U.S.               
            SMALL CAP                 Russell 2000
5/3/95                     9870                      10179.4                    
6/30/95                    10770                     10707.5                    
9/30/95                    12060                     11765                      
12/31/95                   11600                     12019.9                    
3/31/96                    13296.8                   12633.3                    
6/30/96                    15350.9                   13265.3                    
9/30/96                    15791.8                   13310.1                    
12/31/96                   17004.2                   14002.6                    
3/31/97                    16365.5                   13278.5                    
6/30/97                    19093.1                   15431.1                    
9/30/97                    22394.9                   17727.7                    
12/31/97                   22005.3                   17134                      
3/31/98                    24865.1                   18857.5                    
6/30/98                    25361.1                   17978.3                    
9/30/98                    20875.5                   14356.5                    
12/31/98                   23916.2                   16697.8                    
3/31/99                    22387.9                   15792.1                    
6/30/99                    26374.5                   18248                      
9/30/99                    25388.8                   17094.2                    
12/31/99                   29908.8                   20247.2                    
3/31/00                    29076.9                   21681.5                    
6/30/00                    25545.4                   20862                      
9/30/00                    26740.9                   21092.7                    
12/31/00                   27469.2                   19635.5                    
3/31/01                    26306.2                   18358.2                    
6/30/01                    31669.2                   20981.2                    
9/30/01                    26567.5                   16619.3                    
12/31/01                   30596.6                   20123.7                    

This graph compares the results of $10,000 invested in Wanger U.S. Small Cap on 
May 3,1995 (the date the Fund began operations) through December 31, 2001 with  
the Russell 2000. Dividends and capital gains are reinvested. The line graph and
the table do not reflect the deduction of taxes that a shareholder would pay on 
Fund distributions or the redemption of Fund shares. The performance data quoted
is past performance and does not guarantee future results. The investment return
and principal value of an investment will fluctuate so that investors' shares,  
when redeemed, may be worth more or less than their original cost. Due to       
ongoing market volatility, performance is subject to substantial short-term     
fluctuations. Wanger U.S. Small Cap is a diversified fund that invests primarily
in the stocks of small- and medium-size U.S. companies. Smaller company stocks  
are often more volatile or less liquid than the stocks of larger companies.     

MUTUAL FUND PERFORMANCE CHANGES OVER TIME. CURRENT RETURNS FOR THE FUND MAY BE  
DIFFERENT THAN THAT SHOWN.                                                      

--------------------------------------------------------------------------------
RESULTS AS OF DECEMBER 31, 2001                                                 

 4th quarter    1 Year
WANGER U.S. SMALL CAP              15.17%    11.39%                             
Russell 2000                       21.09%     2.49%                             
S&P MidCap 400                     17.99%    -0.60%                             
S&P 500                            10.69%   -11.89%                             

N.A.V. AS OF 12/31/01:  $22.25                                                  

The Russell 2000 is formed by taking the 3,000 largest U.S. companies and then  
eliminating the largest 1,000, leaving a mainly small company index. The S&P    
MidCap 400 is a market value-weighted index of 400 U.S. stocks that are in the  
next tier down from the S&P 500. The S&P 500 is a broad market-weighted average 
of blue-chip U.S. companies. All indexes are unmanaged and include reinvested   
dividends. It is not possible to invest directly in an index.                   

Performance numbers reflect all Fund expenses but do not include any insurance  
charges imposed by your insurance company's separate accounts. If performance   
included the effect of these additional charges, it would be lower.             

--------------------------------------------------------------------------------
TOP 5 INDUSTRIES                                                                
As a % of net assets, as of 12/31//01                                           
Information                                  32.3%                              
Health Care                                  18.3                               
Finance                                      11.7                               
Consumer Goods/Services                      10.9                               
Energy/Minerals                               8.0                               

--------------------------------------------------------------------------------
TOP 10 HOLDINGS                                                                 

1. Lincare Holdings                             5.0%                            
Home Health Care Services                                                       

2. AmeriCredit                                  4.4%                            
Auto Lending                                                                    

3. ITT Educational                                                              
Services                                        4.2%                            
Technology-oriented Post- secondary Degree Programs                             

4. Kronos                                       3.9%                            
Labor Management Solutions                                                      

5. Conectiv                                     3.2%                            
Electric Utility in New Jersey, Delaware & Maryland                             

6. First Health Group                           3.0%                            
PPO Network                                                                     

7. JDA Software                                 2.9%                            
Application/Software & Services for Retailers                                   

8. SEI Investments                              2.8%                            
Mutual Fund Administration                                                      

9. Commonwealth                                                               
Telephone                                       2.2%                            
Rural Phone Franchises & CLEC                                                   

10. Micros Systems                              2.2%                            
Information Systems for Restaurants & Hotels                                    

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                                   Wanger Advisors Trust      2001 Annual Report
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PERFORMANCE REVIEW    WANGER INTERNATIONAL SMALL CAP                            

The last quarter of 2001 once again proved how hard it is to forecast markets.  
Despite widespread investor panic following the events of September 11, equities
rallied around the globe. Wanger International Small Cap posted a three-month   
return of 10.47%, outperforming Fund benchmarks. The year was not so kind to the
Fund, however. Wanger International Small Cap ended 2001 down 21.27%,           
underperforming its benchmark indexes the EMI Global ex-US, down 14.66%, and the
EMI World ex-US, down 15.70%.                                                   

Winners for the year included financial services company Kempen (Netherlands).  
The stock rose mid-year when it was announced that Kempen would be acquired by  
Dexia at a 36% premium. Canada's AltaGas Services, a natural gas processor,     
struggled in 2000 due to dropping gas prices but more stable pricing fueled     
gains for the stock in 2001. Electronics manufacturer Celestica (Canada)        
acquired Omni Industries (Singapore) during the second quarter of 2001. We owned
both stocks and the Fund benefited from the union. Cheil Communications, the    
largest advertising agency in South Korea, was also strong in 2001. Cheil       
Communications is expected to benefit from both a cyclical recovery in          
advertising and some major promotional events in 2002.                          

Our laggards for the year were from diverse sectors and countries. Office supply
manufacturer Buhrmann (Netherlands) stumbled in April when company management   
denied sensitivity to the U.S. economic downturn and later released a profit    
warning blaming its U.S. exposure. Event coordinator and magazine publisher     
Informa (UK) was a casualty of the overall downturn in media stocks. Finally    
Keycorp, an Australian smart card manufacturer, declined following an earnings  
revision mid-year. We have sold all three positions.                            

We are often asked if this is the best time in the cycle to own small-cap       
stocks. We certainly feel there is some underlying support for small-caps going 
forward. The current large-cap cycle of outperformance is over-extended and has 
lasted nearly a decade. Over the last 10 years, large-cap stocks have           
outperformed small-caps globally every year except 1994. Small-cap stocks       
currently trade at a 20% discount to large cap stocks globally, even after a    
substantial derating. We are fundamentally driven and build portfolios one stock
at a time. We cannot say exactly when the large-cap cycle will reverse, but we  
do feel this is a stock-pickers environment.                                    

Small-cap stocks tend to be more volatile and may be less liquid than the stocks
of larger companies. Investments in foreign securities have special risks,      
including political or economic instability, higher costs, different            
regulations, accounting standards, trading practices and levels of information, 
and currency exchange rate fluctuations.                                        

As of 12/31/01, the Fund's positions in the holdings mentioned were: AltaGas    
Services, 2.5%; Celestica, 0.4%; Cheil Communications, 0.4%.                    

Photo of: TODD M. NARTER                                                        
Co-Portfolio Manager                                                            

Photo of: CHRISTOPHER J. OLSON                                                  
Co-Portfolio Manager                                                            

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                                   Wanger Advisors Trust      2001 Annual Report
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WANGER INTERNATIONAL SMALL CAP                      RESULTS TO DECEMBER 31, 2001

THE VALUE OF A $10,000 INVESTMENT IN                                            
WANGER INTERNATIONAL SMALL CAP                                                  

TOTAL RETURN FOR EACH PERIOD                                                    
MAY 3, 1995 THROUGH DECEMBER 31, 2001                                           

AVERAGE ANNUAL TOTAL RETURN                                       
----------------------------------------                                        
1 Year    3 Years   5 Years     Life                                        
-21.27%    8.75%     8.07%     15.53%                                       

LINE CHART:                                                                     

WANGER                                    
                   INTERNATIONAL             EMI World                EMI Global
                SMALL CAP                 ex-U.S.                  ex-U.S.
5/3/95             10790                     9679.25                  10000     
6/30/95            10970                     9560.11                  9889.52   
9/30/95            12910                     9933                     10265.1   
12/31/95           13450                     10128.8                  10421.5   
3/31/96            15499.1                   10710.7                  11019.5   
6/30/96            17183.4                   11185.1                  11491.6   
9/30/96            17023                     10931.2                  11217.3   
12/31/96           17754.8                   10862.8                  11051.5   
3/31/97            18357.5                   10663.4                  10973     
6/30/97            19568.3                   11430.7                  11753.3   
9/30/97            19363.1                   10968.8                  11308.5   
12/31/97           17495.5                   9841.81                  10048.2   
3/31/98            21306.5                   11535.1                  11686.3   
6/30/98            21410.2                   11494                    11462.2   
9/30/98            17437.3                   9753.22                  9673.65   
12/31/98           20352.2                   11037.7                  10923.1   
3/31/99            21564.1                   11195.7                  11104.9   
6/30/99            25404.3                   11884.5                  11939.7   
9/30/99            29265.6                   12490.3                  12484.8   
12/31/99           46071.7                   13632.1                  13688.2   
3/31/00            54788.8                   13907.5                  14005.8   
6/30/00            44628                     13664.3                  13590.7   
9/30/00            41179                     12944.5                  12822.6   
12/31/00           33243.8                   12224.6                  11966     
3/31/01            29861.7                   10921.8                  10807.9   
6/30/01            29742.8                   11253.9                  11102.3   
9/30/01            23692.2                   9519.82                  9347.86   
12/31/01           26173.6                   10305                    10211.8   

This graph compares the results of $10,000 invested in Wanger International     
Small Cap on May 3,1995 (the date the Fund began operations) through December   
31, 2001 with the EMI World ex-U.S. and the EMI Global ex-U.S. Dividends and    
capital gains are reinvested. The line graph and the table do not reflect the   
deduction of taxes that a shareholder would pay on Fund distributions or the    
redemption of Fund shares. The performance data quoted is past performance and  
does not guarantee future results. The investment return and principal value of 
an investment will fluctuate so that investors' shares, when redeemed, may be   
worth more or less than their original cost. Due to ongoing market volatility,  
performance is subject to substantial short-term fluctuations. Wanger           
International Small Cap is a diversified fund that invests primarily in the     
stocks of non-U.S. companies with capitalizations of less than $2 billion.      
Smaller company stocks are often more volatile or less liquid than the stocks of
larger companies. Investments in foreign securities have special risks,         
including political or economic instability, higher costs, different            
regulations, accounting standards, trading practices and levels of information  
and currency exchange rate fluctuations.                                        

MUTUAL FUND PERFORMANCE CHANGES OVER TIME. CURRENT RETURNS FOR THE FUND MAY BE  
DIFFERENT THAN THAT SHOWN.                                                      

--------------------------------------------------------------------------------
RESULTS TO DECEMBER 31, 2001                                                    

           4th quarter      1 Year
WANGER INTERNATIONAL SMALL CAP         10.47%     -21.27%                       
EMI Global ex-US                        9.24%     -14.66%                       
EMI World ex-US                         8.25%     -15.70%                       
EAFE                                    6.97%     -21.44%                       

N.A.V. AS OF 12/31/01: $15.40                                                   

The EMI Global ex-US is an index of the bottom 20% of institutionally investable
capital of developed and emerging countries, selected by index sponsor, outside 
the U.S. The EMI World ex-US is an index of the bottom 20% of institutionally   
investable capital of developed, non-U.S. countries, as selected by index       
sponsor. EAFE is Morgan Stanley's Europe, Australasia and Far East Index, an    
index of companies throughout the world in proportion to world stock market     
capitalization, excluding the U.S. and Canada. All indexes are unmanaged and    
returns include reinvested dividends. It is not possible to invest directly in  
an index.                                                                       

Performance numbers reflect all Fund expenses but do not include any insurance  
charges imposed by your insurance company's separate accounts. If performance   
included the effect of these additional charges, it would be lower.             

--------------------------------------------------------------------------------
TOP 5 COUNTRIES                                                                 
As a % of net assets, as of 12/31/01                                            
United Kingdom                                18.2%                             
Japan                                         13.7                              
Netherlands                                    9.0                              
Spain                                          6.8                              
Canada                                         6.4                              

--------------------------------------------------------------------------------
TOP 10 HOLDINGS                                                                 

1. AltaGas Services                             2.5%                            
Natural Gas Gatherer & Processor - Canada                                       

2. St. James Capital                            1.8%                            
Life Insurance & Investment Product Distributor - UK                            

3. Bang & Olufsen                               1.8%                            
Manufacturer of High-End Electronics - Denmark                                  

4. Spectris                                     1.6%                            
Electronic Instruments & Controls - UK                                          

5. Hunter Douglas                               1.6%                            
Decorative Window Coverings - Netherlands                                       

6. Eneserve                                     1.5%                            
In-house Power Generators - Japan                                               

7. Fininfo                                      1.5%                            
Data Feeds for French Banks & Brokers - France                                  

8. Red Electrica                                1.5%                            
Power Grid - Spain                                                              

9. ARRK                                         1.5%                            
Prototypes & Moulds - Japan                                                     

10. Prosegur                                    1.5%                            
Security Guards - Spain                                                         

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PERFORMANCE REVIEW     WANGER TWENTY                                            

Wanger Twenty gained 17.97% in the fourth quarter propelling the Fund into      
positive territory for the year. The Fund increased 9.09% in 2001 vs. a 0.60%   
loss for the S&P MidCap 400 and an 11.89% loss for the S&P 500. We are happy    
when the Fund can produce a positive investment return for you in a down year.  

Fortunately, the Fund's best stocks during the year were also its biggest       
positions. H&R Block, the Fund's second biggest investment, was up 120% in 2001 
as strong results from its core tax preparation business and mortgage operations
caught investors' attention. Boston Scientific, the Fund's biggest position,    
returned 75% as positive results from its drug-coated stent trial raised hopes  
for higher growth in the future. We bought Immunex mid-year and it's now the    
Fund's fourth largest position. In December, Immunex agreed to sell out to      
Amgen, giving the portfolio a nice shot in the arm.                             

The Fund did suffer losses from a number of its smaller positions. Waters       
declined on earnings warnings made mid-year but rebounded as its business       
improved. Dynegy fell 34% as a victim of its association with Enron. We believe 
the stock represents a good value today and have added to the Fund's position.  
Finally, Tektronix fell 24% in a tough year for technology stocks.              

The Fund's results for the year underscore the importance of picking the right  
stocks and therefore credit must be given to the entire Liberty Wanger Asset    
Management domestic research team for their efforts. Once again, I must thank   
Ralph Wanger, Chuck McQuaid, Rob Mohn, Jason Selch, Ben Andrews, Susie          
Hultquist, Harold Lichtenstein, Grant McKay, and Rob Chalupnik. In addition,    
Todd Griesbach joined our group this year and has already made a significant    
contribution to the Fund in the leisure and gaming area. New trader Mike Olah   
joined Deb Wolfe and Shelley Maish in providing exceptional trading throughout  
the year. To all of these fine people, I extend my gratitude for making 2001 a  
successful year. Finally, we thank you, our fellow shareholders, for your       
continued support in Wanger Twenty.                                             

Wanger Twenty is a non-diversified fund. The performance of each of its holdings
will have a greater impact on the Fund's total return, and may make the Fund's  
returns more volatile than a more diversified fund. Mid-cap stocks tend to be   
more volatile and may be less liquid than the stocks of larger companies.       

As of 12/31/01, the Fund's positions in the holdings mentioned were: H&R Block, 
8.3%; Boston Scientific, 8.4%; Immunex, 5.2%; Waters, 3.1%; Dynegy, 2.4%;       
Tektronix, 2.3%.                                                                

Photo of: JOHN H. PARK                                                          
Portfolio Manager                                                               

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Wanger Advisors Trust      2001 Annual Report                                   

WANGER TWENTY                                       RESULTS TO DECEMBER 31, 2001

THE VALUE OF A $10,000 INVESTMENT IN                                            
WANGER TWENTY                                                                   

TOTAL RETURN FOR THE PERIOD                                                     
FEBRUARY 1, 1999 THROUGH DECEMBER 31, 2001                                      

AVERAGE ANNUAL                                                            
TOTAL RETURN                                                              
------------------                                                              
1 Year     Life                                                             
9.09%    17.58%                                                           

LINE CHART:                                                                     

              WANGER TWENTY             S&P MidCap 400
2/1/99                     9750                      9476.42                    
3/31/99                    10530                     9741.15                    
6/30/99                    12530                     11120.2                    
9/30/99                    11410                     10186.3                    
12/31/99                   13430                     11936.9                    
3/31/00                    13696.7                   13451.5                    
6/30/00                    13822                     13008.1                    
9/30/00                    15064.3                   14588.3                    
12/31/00                   14698.9                   14026.6                    
3/31/01                    13790.7                   12515.5                    
6/30/01                    15220.9                   14162.3                    
9/30/01                    13592.3                   11816.4                    
12/31/01                   16035.2                   13941.9                    

This graph compares the results of $10,000 invested in Wanger Twenty on February
1, 1999 through December 31, 2001, to the S&P MidCap 400 Index, with dividends  
and capital gains reinvested. The performance data quoted is past performance   
and does not guarantee future results. The line graph and the table do not      
reflect the deduction of taxes that a shareholder would pay on Fund             
distributions or the redemption of Fund shares. The investment return and       
principal value of an investment will fluctuate so that investors' shares, when 
redeemed, may be worth more or less than their original cost. Due to ongoing    
market volatility, performance is subject to substantial short-term             
fluctuations. Part of the performance shown is due to the Fund's purchase of    
securities in IPOs. The impact of IPO purchases declines as a Fund grows large. 
Wanger Twenty is a non-diversified fund that invests primarily in the stocks of 
medium- to larger-size U.S. companies. Each stock may represent a significant   
part of its overall portfolio. The performance of each of these larger holdings 
will have a greater impact on Wanger Twenty's total return and may make the     
fund's returns more volatile than a more diversified fund. Mid-cap stocks are   
more volatile and may be less liquid than large-cap stocks.                     

MUTUAL FUND PERFORMANCE CHANGES OVER TIME. CURRENT RETURNS FOR THE FUND MAY BE  
DIFFERENT THAN THAT SHOWN.                                                      

Performance results reflect any voluntary waivers or reimbursements of Fund     
expenses by the Advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.                        

--------------------------------------------------------------------------------
RESULTS TO DECEMBER 31, 2001                                                    

                   4th quarter      1 Year
WANGER TWENTY                              17.97%       9.09%                   
S&P MidCap 400                             17.99%      -0.60%                   
S&P 500                                    10.69%     -11.89%                   
Lipper Mid Cap Core Funds Index            18.03%      -4.90%                   

N.A.V. AS OF 12/31/01:  $15.36                                                  

The S&P MidCap 400 is a market value-weighted index of 400 U.S. stocks that are 
in the next tier down from the S&P 500. The S&P 500 is a broad market-weighted  
average of blue-chip U.S. companies. The Lipper Mid Cap Funds Index measures the
performance of the 30 largest mid-cap funds tracked by Lipper. All indexes are  
unmanaged and include reinvested dividends. It is not possible to invest        
directly in an index.                                                           

Performance numbers reflect all Fund expenses but do not include any insurance  
charges imposed by your insurance company's separate accounts. If performance   
included the effect of these additional charges, it would be lower.             

--------------------------------------------------------------------------------
TOP 5 INDUSTRIES                                                                
As a % of net assets, as of 12/31/01                                            
Information                                   39.1%                             
Health Care                                   21.4                              
Finance                                       15.6                              
Consumer Goods/Services                       10.6                              
Industrial Goods/Services                      5.3                              
Energy/Minerals                                2.4                              

--------------------------------------------------------------------------------
TOP 10 HOLDINGS                                                                 
1. Boston Scientific                            8.4%                            
Stents & Catheters                                                              
2. H&R Block                                    8.3%                            
Tax Preparation                                                                 
3. Expeditors International                                                     
of Washington                                   5.3%                            
International Freight Forwarder                                                 
4. Immunex                                      5.2%                            
Drugs for Autoimmune                                                            
Diseases, Cancer                                                                
5. Liberty Media                                                                
Group, AT&T                                     5.0%                            
CATV &Satellite Dish Programming                                                
6. First Health Group                           4.8%                            
PPO Network                                                                     
7. Associated Banc-Corp                         4.6%                            
Midwest Bank                                                                    
8. Harley-Davidson                              4.5%                            
Motorcycles & Related Merchandise                                               
9. Markel                                       4.2%                            
Specialty Insurance                                                             
10. TCF Financial                               4.0%                            
Great Lakes Bank                                                                

9 

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                                   Wanger Advisors Trust      2001 Annual Report
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PERFORMANCE REVIEW     WANGER FOREIGN FORTY                                     

Wanger Foreign Forty ended the fourth quarter up 12.46%, outperforming the SSB  
World ex-US $2-$10B Index, up 7.97%, and nearly doubling the 6.97% gain of the  
EAFE Index. While the quarter provided some relief, the year was difficult for  
the Fund and for the markets in general. The Fund finished 2001 down 26.61% vs. 
a 15.49% decline for the SSB World ex-US $2-$10B and a 21.44% drop of the EAFE. 

In 2001, recession crippled global economies. The economic slowdown caused      
corporate profits to tumble and global equity markets to plunge. Technology,    
media and telecommunication stocks had a debacle. Wanger Foreign Forty's worst  
performers reflected this market activity as tech, media and telecom stocks     
littered the Fund's laggard list. A heavy weighting in these sectors caused the 
Fund's underperformance for the year. Dimension Data, a network integration     
company based in the UK, was off 80%. Australian smart card system developer ERG
declined 69% and RTL, a Belgian broadcaster, declined 50%.                      

The year's winners came from more diverse sectors. The UK's Smith & Nephew, a   
medical equipment supplier, was up more than 26%. Two stocks from the financial 
sector, Investors Group (Canada) and Deutsche Boerse (Germany), were among the  
winners for the year. A strong fourth quarter showing helped move Taiwan's      
United Microelectronics, a manufacturer of custom-made semiconductors, to the   
Fund's winner list.                                                             

Late in the year, the market clouds lifted as technology and consumer cyclical  
stocks started to rebound from September lows. We took advantage of the bounce  
in technology stocks and reduced the Fund's weighting to more neutral levels vs.
the benchmark. We believe this is still an environment where valuation matters. 
We eliminated the Fund's positions in telecom services company Comverse         
Technology (Israel) and Sky Perfect Communications, a satellite broadcasting    
company (Japan). We moved the money into stocks that we believe represent better
values. At year-end, the Fund's largest sector exposure was in health care      
stocks.                                                                         

Wanger Foreign Forty is a non-diversified fund. The performance of its holdings 
will have a greater impact on the Fund's total return, and may make the Fund's  
returns more volatile than a more diversified fund. Beginning February 1, 2002, 
Wanger Foreign Forty will become a diversified fund. Mid-cap stocks tend to be  
more volatile and may be less liquid than the stocks of larger companies.       
Investments in foreign securities have special risks, including political or    
economic instability, higher costs, different regulations, accounting standards,
trading practices and levels of information, and currency exchange rate         
fluctuations.                                                                   

As of 12/31/01, the Fund's positions in the holdings mentioned were: RTL, 1.8%; 
Smith & Nephew, 3.1%; Investors Group, 3.8%; Deutsche Boerse, 3.1%; United      
Microelectronics, 2.6%.                                                         

Photo of: TODD M. NARTER                                                        
Co-Portfolio Manager                                                            

Photo of: CHRISTOPHER J. OLSON                                                  
Co-Portfolio Manager                                                            

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--------------------------------------------------------------------------------

WANGER FOREIGN FORTY                               RESULTS TO DECEMBER 31, 2001 

THE VALUE OF A $10,000 INVESTMENT IN                                            
WANGER FOREIGN FORTY                                                            

TOTAL RETURN FOR THE PERIOD                                                     
FEBRUARY 1, 1999 THROUGH DECEMBER 31, 2001                                      

AVERAGE ANNUAL                                                            
TOTAL RETURN                                                            
------------------                                                              
1 Year     Life                                                             
-26.61%   10.23%                                                            

LINE CHART:                                                                     

WANGER                    
    FOREIGN FORTY             EAFE
2/1/99                     10020                     9755.34                    
3/31/99                    10190                     10178.9                    
6/30/99                    11350                     10461.2                    
9/30/99                    11650                     10918.6                    
12/31/99                   18390                     12751.4                    
3/31/00                    20853                     12737.8                    
6/30/00                    20193.5                   12255.4                    
9/30/00                    19827.1                   11264.5                    
12/31/00                   18099.8                   10944.6                    
3/31/01                    14664.2                   9444.36                    
6/30/01                    15052.2                   9345.68                    
9/30/01                    11811.2                   8037.29                    
12/31/01                   13283.4                   8597.79                    

This graph compares the results of $10,000 invested in Wanger Foreign Forty on  
February 1, 1999 through December 31, 2001, to the EAFE Index, with dividends   
and capital gains reinvested. The performance data quoted is past performance   
and does not guarantee future results. The line graph and the table do not      
reflect the deduction of taxes that a shareholder would pay on Fund             
distributions or the redemption of Fund shares. The investment return and       
principal value of an investment will fluctuate so that investors' shares, when 
redeemed, may be worth more or less than their original cost. Due to ongoing    
market volatility, performance is subject to substantial short-term             
fluctuations. Wanger Foreign Forty is a non-diversified fund that invest in the 
stocks of medium- to larger-size companies with market capitalizations of $5    
billion to $15 billion. Each stock may represent a significant part of its      
overall portfolio. The performance of each of these larger holdings will have a 
greater impact on Wanger Foreign Forty's total return and may make the fund's   
returns more volatile than a more diversified international fund. Effective     
February 1, 2002, the Fund will be a diversified fund. Mid-cap stocks are more  
volatile and may be less liquid than large-cap stocks. Investments in foreign   
securities have special risks, including political or economic instability,     
higher costs, different regulations, accounting standards, trading practices and
levels of information, and currency exchange rate fluctuations.                 

MUTUAL FUND PERFORMANCE CHANGES OVER TIME. CURRENT RETURNS FOR THE FUND MAY BE  
DIFFERENT THAN THAT SHOWN.                                                      

Performance results reflect any voluntary waivers or reimbursements of Fund     
expenses by the Advisor or its affiliates. Absent these waivers or reimbursement
arrangements, performance results would have been lower.                        

--------------------------------------------------------------------------------
RESULTS TO DECEMBER 31, 2001                                                    

      4th quarter     1 Year
WANGER FOREIGN FORTY                12.46%    -26.61%                         
EAFE                                  6.97%    -21.44%                          
SSB World ex-US $2-$10B               7.97%    -15.49%                          

N.A.V. AS OF 12/31/01: $11.64                                                   

EAFE is Morgan Stanley's Europe, Australasia and Far East Index, a widely       
recognized international benchmark that comprises 20 major markets in Europe,   
Australia and the Far East. The SSB World ex-US $2-10B is a subset of Salomon   
Smith Barney's Broad Market Index, representing a mid-cap developed market index
excluding the U.S. All indexes are unmanaged and returns include reinvested     
dividends. It is not possible to invest directly in an index.                   

Performance numbers reflect all Fund expenses but do not include any insurance  
charges imposed by your insurance company's separate accounts. If performance   
included the effect of these additional charges, it would be lower.             

--------------------------------------------------------------------------------
TOP 5 COUNTRIES                                                                 
As a % of net assets, as of 12/31/01                                            
Japan                                         15.0%                             
Switzerland                                   11.6                              
United Kingdom                                10.6                              
Canada                                         7.8                              
Germany                                        7.6                              

--------------------------------------------------------------------------------
TOP 10 HOLDINGS                                                                 
1. Irish Life & Permanent                       4.6%                            
Savings Products - Ireland                                                      
2. Nintendo                                     4.3%                            
Entertainment Software & Hardware - Japan                                       
3. Amdocs                                       4.2%                            
Telecommunications Billing &Customer Care Software - Israel                     
4. TNTPost Group                                4.2%                            
Postal Service &Parcel Delivery - Netherlands                                   
5. Synthes-Stratec                              4.1%                            
Products for Orthopedic Surgery - Switzerland                                   
6. Rhoen-Klinikum                               4.1%                            
Hospital Management - Germany                                                   
7. Investors Group                              3.8%                            
Mutual Funds - Canada                                                           
8. Autogrill                                    3.6%                            
Restaurants & Catering for Travelers - Italy                                    
9. Orix                                         3.5%                            
Finance Leasing - Japan                                                         
10. Smith & Nephew                              3.1%                            
Medical Equipment & Supplies - UK                                               

11

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--------------------------------------------------------------------------------
WANGER U.S. SMALL CAP                 STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          
COMMON STOCKS-91.7%                                           

INFORMATION-32.3%                                             
--------------------------------------------------------------------------------
TELEVISION PROGRAMMING-1.1%                                   
305,000  Mediacom Communications (b)                                  $5,569,300
Cable Television Franchises                                   

--------------------------------------------------------------------------------
RADIO-2.1%                                                    
395,900  Salem Communications (b)                                      9,105,700
Radio Stations for Religious Programming                      
 80,000  Cumulus Media, Cl. A (b)                                      1,294,400
Radio Stations in Small Cities                                
--------------------------------------------------------------------------------
                                                                      10,400,100

--------------------------------------------------------------------------------
TELECOMMUNICATIONS/WIRELINE COMMUNICATIONS-2.2%               
245,300  Commonwealth Telephone (b)                                   11,161,150
Rural Phone Franchises & CLEC                                 

--------------------------------------------------------------------------------
MOBILE COMMUNICATIONS-3.2%                                    
114,000  Telephone & Data Systems                                     10,231,500
Cellular & Telephone Services                                 
351,750  COMARCO (b)                                                   5,364,188
Wireless Network Testing                                      
--------------------------------------------------------------------------------
                                                                      15,595,688

--------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT-0.3%                             
347,800  Aspect Telecommunications (b)                                 1,349,464
Call Center Equipment                                         

--------------------------------------------------------------------------------
BUSINESS INFORMATION/MARKETING SERVICES/                      
MARKETING-3.0%                                                
192,900  Information Holdings (b)                                      5,460,999
Scientific & Medical Publications, Patent Information         
153,700  Getty Images (b)                                              3,532,026
Photographs for Publications & Electronic Media               
430,000  Navigant Consulting (b)                                       2,365,000
Consulting Firm                                               
200,000  Rainbow Technologies (b)                                      1,480,000
Computer Network Security Products                            
 70,000  Martha Stewart Living Omnimedia (b)                           1,151,500
Magazines, Merchandise & TV Programs                          

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
BUSINESS INFORMATION/MARKETING SERVICES/                      
MARKETING-3.0% (CONT)                                         
181,000  PRIMEDIA (b)                                                   $787,350
Specialty Magazines & Other Publications                      
--------------------------------------------------------------------------------
                                                                      14,776,875

--------------------------------------------------------------------------------
BUSINESS SOFTWARE-11.8%                                       
406,350  Kronos (b)                                                   19,659,213
Labor Management Solutions                                    
640,000  JDA Software (b)                                             14,304,000
Applications/Software & Services for Retailers                
442,900  Micros Systems (b)                                           11,116,790
Information Systems for Restaurants & Hotels                  
280,000  JD Edwards (b)                                                4,606,000
Mid Market ERP & Supply Chain Software                        
960,000  Novell (b)                                                    4,406,400
Directory, Identity Management & Authorization Software       
426,600  Mapics (b)                                                    2,627,856
Mid Market ERP Software                                       
 76,000  MRO Software (b)                                              1,776,880
Enterprise Management Software                                
 25,000  Hyperion Solutions (b)                                          496,500
Application Software                                          
--------------------------------------------------------------------------------
                                                                      58,993,639

--------------------------------------------------------------------------------
TRANSACTION PROCESSORS-2.9%                                   
247,440  Global Payments                                               8,511,936
Credit Card Processor                                         
177,000  Concord EFS (b)                                               5,802,060
Credit Card Processor                                         
--------------------------------------------------------------------------------
                                                                      14,313,996

--------------------------------------------------------------------------------
COMPUTER HARDWARE/RELATED SYSTEMS-0.9%                        
 31,600  Zebra Technologies (b)                                        1,754,116
Bar Code Printing Hardware, Supplies & Software               
111,000  American Power Conversion (b)                                 1,605,060
Uninterruptible Power Systems                                 
301,205  SensAble Technologies (b)                                     1,000,000
Sensory Devices for Computer Based Sculpting                  
--------------------------------------------------------------------------------
                                                                       4,359,176

See accompanying notes to financial statements.                                 

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WANGER U.S. SMALL CAP                 STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
SEMICONDUCTORS/RELATED EQUIPMENT-1.1%                         
 68,600  Microsemi (b)                                                $2,037,420
Analog/Mixed Signal Semiconductors                            
 90,000  Integrated Circuit Systems (b)                                2,033,100
Silicon Timing Devices                                        
120,000  Axcelis Technologies (b)                                      1,546,800
Ion Implantation Tools                                        
--------------------------------------------------------------------------------
                                                                       5,617,320

--------------------------------------------------------------------------------
GAMING EQUIPMENT- 0.1%                                        
 35,000  Shuffle Master (b)                                              548,450
Card Shufflers, Casino Games & Slot Machines                  

--------------------------------------------------------------------------------
INSTRUMENTATION-1.5%                                          
288,000  Tektronix (b)                                                 7,424,640
Analytical Instruments                                        

--------------------------------------------------------------------------------
COMPUTER SERVICES-1.9%                                        
753,000  RCM Technologies (b)                                          3,539,100
Technology Staffing Services                                  
137,000  American Management Systems (b)                               2,476,960
Software Development Services                                 
170,000  Pomeroy Computer Resources (b)                                2,295,000
Network Integration Services                                  
256,600  Analysts International                                        1,059,758
Technology Staffing Services                                  
--------------------------------------------------------------------------------
                                                                       9,370,818

--------------------------------------------------------------------------------
CONTRACT MANUFACTURING-0.2%                                   
 98,800  Pemstar (b)                                                   1,185,600
Electronic Manufacturing Services                             
--------------------------------------------------------------------------------
         INFORMATION-TOTAL                                           160,666,216

HEALTH CARE-18.3%                                             
--------------------------------------------------------------------------------
BIOTECHNOLOGY/DRUG DELIVERY-0.9%                              
 42,000  Myriad Genetics (b)                                           2,210,880
Gene Discovery & Diagnostic Products                          
154,231  SYRRX, Series C (b)                                           1,002,501
X-ray Crystallography                                         

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
BIOTECHNOLOGY/DRUG DELIVERY-0.9% (CONT)                       
250,000  Locus Discovery, Series D. Pfd. (b)                          $1,000,000
High Throughput Rational Drug Design                          
 55,000  Genzyme Molecular Oncology Division (b)                         440,000
Gene Expression Technology & Cancer Drugs                     
--------------------------------------------------------------------------------
                                                                       4,653,381

--------------------------------------------------------------------------------
MEDICAL EQUIPMENT-4.4%                                        
371,000  Steris (b)                                                    6,778,170
Sterilization Devices                                         
136,000  Orthofix International (b)                                    5,045,940
Bone Fixation & Stimulation Devices                           
158,000  Edwards Lifesciences (b)                                      4,365,540
Heart Valves                                                  
338,000  Novoste (b)                                                   2,954,120
Radiation Catheters for In-Stent Restenosis                   
207,000  Visx (b)                                                      2,742,750
Laser Eye Surgery                                             
--------------------------------------------------------------------------------
                                                                      21,886,520

--------------------------------------------------------------------------------
SERVICES-13.0%                                                
866,000  Lincare Holdings (b)                                         24,810,900
Home Health Care Services                                     
606,000  First Health Group (b)                                       14,992,440
PPO Network                                                   
309,300  NDCHealth (formerly known as                                           
         National Data)                                               10,686,315
Health Claims Processing & Drug Marketing Services            
555,000  Beverly Enterprises (b)                                       4,773,000
Nursing Homes                                                 
592,700  Magellan Health Services (b)                                  3,763,645
Mental Health Services                                        
115,000  Serologicals Corporation (b)                                  2,472,500
Blood Collection & Antibody Production                        
 86,000  Syncor International (b)                                      2,463,040
Nuclear Pharmacy for Radiopharmaceuticals                     
 18,000  Medquist (b)                                                    526,500
Medical Transcription Services                                
--------------------------------------------------------------------------------
                                                                      64,488,340

--------------------------------------------------------------------------------
         HEALTH CARE-TOTAL                                            91,028,241
--------------------------------------------------------------------------------

See accompanying notes to financial statements.                                 

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WANGER U.S. SMALL CAP                 STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

CONSUMER GOODS/SERVICES-10.9%                                 
--------------------------------------------------------------------------------
RETAIL-2.4%                                                   
 99,000  Zale (b)                                                     $4,146,120
Specialty Retailer of Jewelry                                 
 43,000  Whole Foods Market (b)                                        1,873,080
Natural Food Supermarkets                                     
 90,000  Borders (b)                                                   1,785,600
Bookstores                                                    
 45,000  Christopher & Banks (b)                                       1,541,250
Specialty Women's Retailer at Moderate Price Levels           
105,000  Gadzooks (b)                                                  1,442,700
Teen Apparel Retailer                                         
 40,000  Hot Topic (b)                                                 1,255,600
Music Inspired Retailer of Apparel, Accessories & Gifts       
--------------------------------------------------------------------------------
                                                                      12,044,350

--------------------------------------------------------------------------------
APPAREL-2.0%                                                  
445,000  Steven Madden (b)                                             6,261,150
Wholesaler/Retailer of Fashion Footwear                       
 43,000  Coach (b)                                                     1,676,140
Designer & Retailer of Branded Leather Accessories            
 39,480  Jones Apparel (b)                                             1,309,552
Women's Apparel                                               
 60,000  Skechers USA (b)                                                877,200
Footwear Designer & Marketer                                  
--------------------------------------------------------------------------------
                                                                      10,124,042

--------------------------------------------------------------------------------
ENTERTAINMENT-0.5%                                            
 80,000  Six Flags (b)                                                 1,230,400
Worldwide Theme Park Operator                                 
 45,000  Speedway Motors (b)                                           1,137,600
Motorsport Racetrack Owner & Operator                         
--------------------------------------------------------------------------------
                                                                       2,368,000

--------------------------------------------------------------------------------
CASINOS-0.2%                                                  
107,700  Monarch Casino & Resort (b)                                     861,600
Casino/Hotel in Reno                                          

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
DURABLE GOODS-1.6%                                            
410,000  Callaway Golf                                                $7,851,500
Premium Golf Clubs & Balls                                    

--------------------------------------------------------------------------------
CONSUMER SERVICES-4.2%                                        
573,000  ITT Educational Services (b)                                 21,126,510
Technology-oriented Post-secondary Degree Programs            

--------------------------------------------------------------------------------
         CONSUMER GOODS/SERVICES-TOTAL                                54,376,002

FINANCE-11.7%                                                 
--------------------------------------------------------------------------------
BANKS/SAVINGS & LOANS-1.9%                                    
 99,000  Texas Regional Bancshares                                     3,747,150
TexMex Bank                                                   
105,500  Chittenden                                                    2,911,800
Vermont & Western Massachusetts Bank                          
 37,000  TCF Financial                                                 1,775,260
Great Lakes Bank                                              
 26,500  Peoples Bank Bridgeport                                         563,390
Connecticut Savings & Loan                                    
 18,200  Anchor Bancorp Wisconsin                                        322,868
Wisconsin Thrift                                              
--------------------------------------------------------------------------------
                                                                       9,320,468

--------------------------------------------------------------------------------
FINANCE COMPANIES-4.7%                                        
690,400  AmeriCredit (b)                                              21,782,120
Auto Lending                                                  
232,000  World Acceptance (b)                                          1,693,600
Personal Loans                                                
--------------------------------------------------------------------------------
                                                                      23,475,720

--------------------------------------------------------------------------------
INSURANCE-1.6%                                                
100,000  HCC Insurance Holdings                                        2,755,000
Aviation Insurance                                            
 15,000  Markel (b)                                                    2,694,750
Specialty Insurance                                           
 92,000  Leucadia National                                             2,656,040
Insurance Holding Company                                     
--------------------------------------------------------------------------------
                                                                       8,105,790

See accompanying notes to financial statements.                                 

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WANGER U.S. SMALL CAP                 STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
MONEY MANAGEMENT-3.5%                                         
306,000  SEI Investments                                             $13,803,660
Mutual Fund Administration                                    
 60,900  Neuberger Berman                                              2,673,510
Major Asset Management Company                                
 27,900  BKF Capital Group (b)                                           800,730
Institutional Money Manager                                   
--------------------------------------------------------------------------------
                                                                      17,277,900

--------------------------------------------------------------------------------
         FINANCE-TOTAL                                                58,179,878

INDUSTRIAL GOODS/SERVICES-5.6%                                
--------------------------------------------------------------------------------
STEEL-0.0%                                                    
 53,400  Atchison Casting (b)                                             93,984
Steel Foundries                                               

--------------------------------------------------------------------------------
INDUSTRIAL GOODS-0.6%                                         
 98,000  Clarcor                                                       2,660,700
Mobile & Industrial Filters                                   
 14,600  Mine Safety Appliances (b)                                      586,190
Safety Equipment                                              
--------------------------------------------------------------------------------
                                                                       3,246,890

--------------------------------------------------------------------------------
MACHINERY-0.5%                                                
 50,000  Ametek                                                        1,594,500
Aerospace/Industrial Instruments                              
 32,800  Cuno (b)                                                      1,000,400
Filtration & Fluids Clarification                             
--------------------------------------------------------------------------------
                                                                       2,594,900

--------------------------------------------------------------------------------
SPECIALTY CHEMICALS & INDUSTRIAL MATERIALS-0.4%               
 95,000  Spartech                                                      1,952,250
Plastics Distribution & Compounding                           

--------------------------------------------------------------------------------
OTHER INDUSTRIAL SERVICES-4.1%                                
516,400  Wackenhut, Cl. B (b)                                          9,832,256
Prison Management                                             
412,100  Insurance Auto Auctions (b)                                   5,979,571
Auto Salvage Services                                         

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
OTHER INDUSTRIAL SERVICES-4.1% (CONT)                         
105,000  Clark/Bardes Consulting (b)                                  $2,649,150
Executive Compensation & Benefits Consulting                  
174,000  Hub Group (b)                                                 1,823,520
Truck & Rail Freight Forwarder                                
--------------------------------------------------------------------------------
                                                                      20,284,497

--------------------------------------------------------------------------------
         INDUSTRIAL GOODS/SERVICES-TOTAL                              28,172,521

ENERGY/MINERALS-8.0%                                          
--------------------------------------------------------------------------------
OIL/GAS PRODUCERS-0.2%                                        
 20,000  Evergreen Resources (b)                                         772,200
Coal Seam Gas Producer                                        

--------------------------------------------------------------------------------
OIL SERVICES-1.6%                                             
841,000  Newpark Resources (b)                                         6,643,900
Oilfield Fluid Management & Equipment Rental                  
 89,000  FMC Technologies (b)                                          1,464,050
Deep Water Oil & Gas Well Head Manufacturer                   
--------------------------------------------------------------------------------
                                                                       8,107,950

--------------------------------------------------------------------------------
DISTRIBUTION/MARKETING/REFINING-6.2%                          
393,400  Dynegy                                                       10,031,700
Natural Gas & Electric Processing, Production & Marketing     
232,000  Equitable Resources                                           7,904,240
Natural Gas Utility & Producer                                
580,900  Tesoro Petroleum (b)                                          7,615,599
Oil Refinery/Gas Producer                                     
168,000  Atmos Energy                                                  3,570,000
Natural Gas Utility                                           
115,000  Aquila (b)                                                    1,966,500
Energy Trading                                                
--------------------------------------------------------------------------------
                                                                      31,088,039

--------------------------------------------------------------------------------
         ENERGY/MINERALS-TOTAL                                        39,968,189
--------------------------------------------------------------------------------

See accompanying notes to financial statements.                                 

15

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--------------------------------------------------------------------------------

WANGER U.S. SMALL CAP                 STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

OTHER INDUSTRIES-4.9%                                         
--------------------------------------------------------------------------------
REAL ESTATE-1.1%                                              
 76,000  Chelsea Property Group                                       $3,731,600
Outlet Malls                                                  
 47,000  The Rouse Company                                             1,376,630
Regional Shopping Malls                                       
 21,400  Consolidated Tomoka                                             425,432
16,000 Acres of Florida Land                                  
--------------------------------------------------------------------------------
                                                                       5,533,662

--------------------------------------------------------------------------------
REGULATED UTILITIES-3.8%                                      
647,000  Conectiv                                                     15,845,030
Electric Utility in New Jersey, Delaware & Maryland           
175,000  Unisource Energy                                              3,183,250
Electric Utility in Arizona                                   
--------------------------------------------------------------------------------
                                                                      19,028,280

--------------------------------------------------------------------------------
         OTHER INDUSTRIES-TOTAL                                       24,561,942

TOTAL COMMON STOCKS (COST: $330,591,060)-91.7%                       456,952,989
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Principal                                                                  Value
Amount                                                                          

SHORT-TERM OBLIGATIONS-8.2%                                                     
--------------------------------------------------------------------------------
Yield 1.65% - 1.85% Due 1/02 - 1/04/02                  
$23,832,000 Prudential Funding                                       $23,829,811
 17,174,000 Amgen Financial                                           17,172,235
--------------------------------------------------------------------------------
(AMORTIZED COST: $41,002,046)                                         41,002,046

TOTAL INVESTMENTS (COST: $371,593,106) (a)-99.9%                     497,955,035
--------------------------------------------------------------------------------

CASH AND OTHER ASSETS LESS LIABILITIES-0.1%                              231,108
--------------------------------------------------------------------------------

TOTAL NET ASSETS-100%                                               $498,186,143
================================================================================

NOTES TO STATEMENT OF INVESTMENTS:                                        

(a)  At December 31, 2001, cost for federal income tax purposes is $371,964,220 
and net unrealized appreciation was $125,990,815 consisting of gross  
   unrealized appreciation of $155,532,666 and gross unrealized depreciation
of $29,541,851.                                                       

(b)  Non-income producing security.                                             

See accompanying notes to financial statements.                                 

16

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WANGER INTERNATIONAL SMALL CAP        STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          
COMMON STOCKS-94.2%                                           

EUROPE-57.8%                                                  
--------------------------------------------------------------------------------
GERMANY/AUSTRIA-6.8%                                          
196,000  Norddeutsche Affinerie                                       $2,479,832
Copper Smelter                                                
135,000  GFK                                                           2,327,515
Market Research Services                                      
 78,000  Flughafen Wien (Austria)                                      2,084,940
Vienna Airport Manager                                        
383,000  Takkt                                                         1,979,267
Mail Order Retailer of Office Warehouse Durables              
 92,000  Jenoptik                                                      1,721,412
High Tech Construction & Electrical Components                
 64,000  DisDeutscher Industrie Services                               1,585,267
Temporary Employment                                          
 99,100  Teleplan International (b)                                    1,492,238
Warranty Repair Services                                      
 26,000  Beru                                                          1,135,134
Auto Parts & Electronics                                      
 28,000  Hugo Boss Designs                                               583,783
Fashion Apparel                                               
 20,000  Lion Bioscience                                                 325,215
Bioinformatics                                                
--------------------------------------------------------------------------------
                                                                      15,714,603

--------------------------------------------------------------------------------
DENMARK-2.7%                                                  
173,300  Bang & Olufsen                                                4,048,338
Manufacturer of High-End Electronics                          
 32,000  Kobenhavns Lufthavne                                          2,073,914
Copenhagen Airport Manager                                    
--------------------------------------------------------------------------------
                                                                       6,122,252

--------------------------------------------------------------------------------
NETHERLANDS-9.0%                                              
140,000  Hunter Douglas                                                3,758,416
Decorative Window Coverings                                   
 74,176  Fugro                                                         3,311,150
Survey & GPS Services                                         
160,000  United Services Group                                         3,114,936
Temporary Staffing Services                                   
 69,300  OPG Groep                                                     2,393,904
Pharmaceutical Wholesaler & Retailer                          

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
NETHERLANDS-9.0% (CONT)                                       
104,000  Hagemeyer                                                    $1,945,944
B2B Distributor to Industrial & Construction End Markets      
149,000  Fox Kids Europe (b)                                           1,526,729
Children's Programming                                        
 40,248  Nutreco Holdings                                              1,287,409
Farm Raised Salmon                                            
 60,000  Pink Roccade                                                  1,272,348
Computer Services/Outsourcing                                 
 51,000  IM Tech                                                         955,170
Technical Engineering                                         
 76,300  OCE                                                             766,172
Manufacturer of High Speed Copiers                            
 20,000  Frans Maas Groep (b)                                            398,277
Freight Forwarding/Logistics                                  
--------------------------------------------------------------------------------
                                                                      20,730,455

--------------------------------------------------------------------------------
FINLAND-2.3%                                                  
135,000  Lassila & Tikanoja                                            2,165,130
Waste Removal                                                 
 70,000  Amer Group                                                    1,785,029
Branded Outdoor Sporting Goods                                
135,000  JW Suominen (b)                                                 721,710
Manufacturer of Health Care Supplies                          
160,000  Talentum                                                        655,776
Trade Journals & Internet Services                            
--------------------------------------------------------------------------------
                                                                       5,327,645

--------------------------------------------------------------------------------
SWEDEN-1.0%                                                   
348,400  Metro International (b)                                       1,417,060
Free Subway Newspapers                                        
250,000  Semcon                                                          945,057
Technical Consultant                                          
--------------------------------------------------------------------------------
                                                                       2,362,117

--------------------------------------------------------------------------------
FRANCE/BELGIUM-5.7%                                           
120,000  Fininfo                                                       3,528,360
Data Feeds for French Banks & Brokers                         
 83,200  Prosodie                                                      2,557,526
Automated Call Centers                                        

See accompanying notes to financial statements.                                 

17

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WANGER INTERNATIONAL SMALL CAP        STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
FRANCE/BELGIUM-5.7% (CONT)                                    
 35,000  Ipsos                                                        $1,908,522
Market Research                                               
 40,000  Cegedim                                                       1,835,460
Medical Market Research                                       
250,000  Telindus Group (Belgium)                                      1,782,000
Network Integration Services                                  
 85,900  Euronext (b)                                                  1,626,409
Trading, Clearing & Settlement Services for                   
Financial Markets                                             
--------------------------------------------------------------------------------
                                                                      13,238,277

--------------------------------------------------------------------------------
UNITED KINGDOM/IRELAND-18.2%                                  
800,000  St James Capital                                              4,099,814
Life Insurance & Investment Product Distributor               
550,000  Spectris                                                      3,803,539
Electronic Instruments & Controls                             
360,000  Nestor Healthcare Group                                       2,856,476
Healthcare Staffing Solutions                                 
1,000,000 Taylor Nelson                                                2,809,887
Market Research Services                                      
680,000  Anglo Irish Bank (Ireland)                                    2,635,578
Corporate Lending & Private Banking                           
220,000  French Connection (b)                                         2,578,399
Clothing Wholesaler & Retailer                                
450,000  Expro International                                           2,576,397
Offshore Oil Field Services                                   
1,050,000 Mitie Group                                                  2,495,136
Facilities Management                                         
400,000  Charles Taylor Group                                          2,201,321
Insurance                                                     
330,000  Aberdeen Asset Management                                     1,880,950
Asset Management                                              
160,000  Bloomsbury Publishing                                         1,863,552
Publishing                                                    
350,000  Aggreko                                                       1,859,912
Provider of Temporary Power & Temperature                     
Control Services                                              
620,000  Care UK                                                       1,621,174
Nursing Home & Psychiatric Care Facilities                    

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
UNITED KINGDOM/IRELAND-18.2% (CONT)                           
2,000,000 Waterford Wedgwood (Ireland)                                $1,568,160
Crystal, Tableware & Cookware                                 
200,000  Ricardo                                                       1,289,927
Auto Engine Design                                            
120,000  Jardine Lloyd Thompson Group (b)                              1,074,140
Business Insurance Broker                                     
100,000  Torex                                                         1,065,719
Application Software for Hospital Management & Retail         
120,000  Edinburgh Fund Managers                                         859,563
Investment Management                                         
1,200,000 Incepta                                                        838,598
Business Information & Marketing Services                     
130,000  Hit Entertainment                                               687,986
Children Television Shows                                     
200,000  Umeco                                                           649,331
Aerospace Parts Distributor                                   
435,000  Tullow Oil (b)                                                  478,787
Oil & Gas Producer                                            
 28,600  RPS Group                                                        59,960
Environmental Consulting                                      
  3,000  Topps Tiles (b)                                                  11,924
Retail Tile Company                                           
--------------------------------------------------------------------------------
                                                                      41,866,230

--------------------------------------------------------------------------------
SPAIN/PORTUGAL-7.5%                                           
375,000  Red Electrica                                                 3,491,606
Power Grid                                                    
255,000  Prosegur                                                      3,439,884
Security Guards                                               
356,000  Cortefiel                                                     2,007,851
Apparel Retailer                                              
130,000  Aldeasa                                                       1,983,010
Airport Management                                            
192,500  Zarddoya Otis                                                 1,787,212
Elevator Maintenance & Service Provider                       
510,000  Ibersol (Portugal)                                            1,704,038
Fast Food Retailer                                            
244,100  Abengoa                                                       1,502,877
Engineering & Construction                                    

See accompanying notes to financial statements.                                 

18

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WANGER INTERNATIONAL SMALL CAP        STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
SPAIN/PORTUGAL-7.5% (CONT)                                    
111,100  Aguas de Barcelona                                           $1,385,861
Water Utility                                                 
--------------------------------------------------------------------------------
                                                                      17,302,339

--------------------------------------------------------------------------------
SWITZERLAND-4.4%                                              
 12,500  Kaba Holdings                                                 3,089,024
Building Security Systems                                     
 39,000  Bachem                                                        2,233,138
Drug Manufacturer                                             
  7,000  Feintool International                                        1,603,279
Engineering & Machinery                                       
  5,500  Geberit International                                         1,231,541
Plumbing Supplies                                             
  3,600  Hiestand Holding                                              1,030,679
Bakery Goods                                                  
  7,300  Xstrata (b)                                                     898,695
Smelting                                                      
--------------------------------------------------------------------------------
                                                                      10,086,356

--------------------------------------------------------------------------------
ITALY-0.2%                                                    
145,000  Class Editori                                                   458,642
Newspapers & On-line Financial Data                           

--------------------------------------------------------------------------------
         EUROPE-TOTAL                                                133,208,916

ASIA-25.2%                                                    
--------------------------------------------------------------------------------
HONG KONG-2.8%                                                
4,750,000 Global Bio-Chem Technology Group                             1,659,775
Corn-Based Food Products                                    
2,000,000 SCMP Group                                                   1,256,652
English Language Newspaper in Hong Kong                     
438,000  Hong Kong Exchanges & Clearing                                  665,551
Trading, Clearing & Settlement Services for                   
Financial Markets                                             
200,000  Wing Hang Bank                                                  641,149
Consumer & Commercial Banking                                 
2,250,000 Zhejiang Expressway                                            553,953
Toll Road Builder & Operator                                

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
HONG KONG-2.8% (CONT)                                         
1,526,000 Aeon Credit Service                                           $538,116
Credit Card Issuer                                            
2,020,000 Jiangsu Express                                                442,931
Toll Road Builder & Operator                                  
654,000  JCG Holding (b)                                                 406,732
Consumer Finance                                              
1,720,000 Tingyi Holding                                                 288,927
Instant Noodles                                               
--------------------------------------------------------------------------------
                                                                       6,453,786

--------------------------------------------------------------------------------
JAPAN-13.7%                                                   
100,000  Eneserve (b)                                                  3,568,987
In-house Power Generators                                     
 82,000  ARRK                                                          3,474,523
Prototypes & Moulds                                           
 86,000  Hokuto                                                        2,964,841
Mushroom Producer                                             
120,000  CSK                                                           2,797,479
Computer Services                                             
 50,000  Venture Link                                                  2,710,912
Retail Franchises                                             
  7,000  Bellsystem24                                                  2,604,601
Call Centers                                                  
 63,000  Goldcoast                                                     2,325,005
Developer/Seller of Apartments                                
 28,000  Moshi Moshi Hotline                                           2,211,253
Telemarketing                                                 
 30,000  Drake Beam Morin                                              2,050,269
Employment Outplacement Services                              
 75,000  BML                                                           1,850,938
Clinical Testing                                              
825,000  Daiei OMC (b)                                                 1,628,825
Credit Cards                                                  
115,000  Nitto Kohki                                                   1,593,705
Industrial Equipment Manufacturer                             
 45,200  Fuji Seal                                                     1,561,698
Packaging Materials & Machinery                               
 60,000  Wilson Learning                                                 346,268
Corporate Training                                            
--------------------------------------------------------------------------------
                                                                      31,689,304

19

See accompanying notes to financial statements.                                 

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WANGER INTERNATIONAL SMALL CAP        STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
TAIWAN-4.4%                                                   
200,000  ASE Test (b)                                                 $2,786,000
Semiconductor Packaging Manufacturer                          
2,000,000 Systex (b)                                                   2,103,759
Systems Integrator & Internet Services                      
793,000  Advantech                                                     2,040,017
Computer Based Industrial Automation                          
2,300,000 Chroma Ate                                                   1,722,453
Test & Measurement Instruments                              
1,902,000 Phoenixtec Power                                             1,424,393
Uninterruptable Power Supplies                              
--------------------------------------------------------------------------------
                                                                      10,076,622

--------------------------------------------------------------------------------
SINGAPORE-2.5%                                                
300,000  Venture Manufacturing                                         2,160,845
Electronic Manufacturing Services                             
2,000,000 Sembcorp Logistics                                           1,949,634
Logistic Services for Marine Transport                      
3,052,200 Star Cruises (b)                                             1,144,575
Cruise Line                                                 
317,000  Want Want Holdings                                              602,300
Snack Foods                                                   
--------------------------------------------------------------------------------
                                                                       5,857,354

--------------------------------------------------------------------------------
SOUTH KOREA-1.8%                                              
100,000  S1 Corporation                                                1,348,050
Home/Business Security Services                               
 60,000  Halla Climate Control (b)                                     1,645,078
Auto Parts Manufacturer                                       
 10,000  Cheil Communications                                          1,028,174
Advertising                                                   
--------------------------------------------------------------------------------
                                                                       4,021,302

--------------------------------------------------------------------------------
         ASIA-TOTAL                                                   58,098,368

LATIN AMERICA-2.2%                                            
--------------------------------------------------------------------------------
MEXICO-1.6%                                                   
150,000  Grupo Aeroportuario (b)                                       2,310,000
Mexican Airport Authority                                     
--------------------------------------------------------------------------------

Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
MEXICO-1.6% (CONT)                                            
750,000  Consorcio ARA (b)                                            $1,334,886
Low/Medium Income House Builder                               
--------------------------------------------------------------------------------
                                                                       3,644,886

--------------------------------------------------------------------------------
ARGENTINA-0.6%                                                
 99,000  Siderca                                                       1,435,500
Seamless Pipes for Oil Wells                                  
--------------------------------------------------------------------------------
         LATIN AMERICA-TOTAL                                           5,080,386

OTHER COUNTRIES-9.0%                                          
--------------------------------------------------------------------------------
AUSTRALIA/NEW ZEALAND-1.2%                                    
 75,000  Perpetual Trustees                                            1,681,944
Investment Management                                         
300,000  United Networks Limited (New Zealand)                         1,025,328
New Zealand Electric Grid                                     
--------------------------------------------------------------------------------
                                                                       2,707,272

--------------------------------------------------------------------------------
CANADA-6.4%                                                   
1,271,900 AltaGas Services                                             5,831,838
Natural Gas Gatherer & Processor                            
400,000  Patheon (b)                                                   3,140,506
Pharmaceuticals                                               
135,000  Corus Entertainment (b)                                       2,687,959
CATV Programming & Radio Stations                             
199,998  Silent Witness (b)                                            1,463,461
 99,999  Silent Witness Warrants (b)                                           0
Security Camera Manufacturer                                  
 22,000  Celestica (b)                                                   884,367
Electronic Manufacturing Services                             
 30,000  Precision Drilling (b)                                          773,695
Oil & Gas Well Driller                                        
--------------------------------------------------------------------------------
                                                                      14,781,826

--------------------------------------------------------------------------------
UNITED STATES-0.6%                                            
227,600  MDSI Mobile Data Solutions (b)                                  798,876
Mobile Workforce Management Software                          
 40,000  Riverdeep Group (b)                                             672,400
Educational Software                                          
--------------------------------------------------------------------------------
                                                                       1,471,276

See accompanying notes to financial statements.                                 

20

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WANGER INTERNATIONAL SMALL CAP        STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
ISRAEL-0.8%                                                   
430,000  Paradigm Geophysical (b)                                     $1,887,700
Seismic Software                                              

--------------------------------------------------------------------------------
         OTHER-TOTAL                                                  20,848,074

TOTAL COMMON STOCKS (COST: $241,893,154)-94.2%                       217,235,744
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Principal                                                                  Value
Amount                                                                          

SHORT-TERM OBLIGATIONS-6.6%                                                     
--------------------------------------------------------------------------------
Yield 1.70% - 1.77% Due 1/02 - 1/03/02                    
$9,024,000 Amgen                                                      $9,023,112
 6,172,000 Prudential Funding                                          6,171,709
--------------------------------------------------------------------------------
(AMORTIZED COST: $15,194,821)                                         15,194,821

TOTAL INVESTMENTS (COST: $257,087,975) (a)-100.8%                    232,430,565
--------------------------------------------------------------------------------

CASH AND OTHER ASSETS LESS LIABILITIES-(0.8%)                        (1,804,152)
--------------------------------------------------------------------------------

TOTAL NET ASSETS-100%                                               $230,626,413
================================================================================

--------------------------------------------------------------------------------

NOTES TO STATEMENT OF INVESTMENTS:                                        

(a)  At December 31, 2001, cost for federal income tax purposes is $258,854,899 
and net unrealized depreciation was $26,424,334 consisting of gross   
     unrealized appreciation of $18,353,804 and gross unrealized depreciation of
$44,778,138.                                                          

(b)  Non-income producing security.                                             

(c)  At December 31, 2001, $76,975,698 or 33.4% of the Fund's net assets was    
denominated in the Euro currency.                                     

See accompanying notes to financial statements.                                 

21

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--------------------------------------------------------------------------------

WANGER INTERNATIONAL SMALL CAP       PORTFOLIO DIVERSIFICATION DECEMBER 31, 2001

AT DECEMBER 31, 2001 THE FUND'S PORTFOLIO OF INVESTMENTS AS A PERCENTAGE OF NET 
ASSETS WAS DIVERSIFIED AS FOLLOWS:                                              

                                                              Value      Percent
--------------------------------------------------------------------------------
INFORMATION TECHNOLOGY                                                          
Business Information &                                                          
   Marketing Services                                   $16,634,964         7.2%
Computer Services                                         9,966,362         4.3 
Instrumentation                                           6,989,452         3.0 
Publishing                                                6,324,082         2.8 
Television Programming                                    4,902,674         2.1 
Computer Hardware                                         3,464,411         1.5 
Contract Manufacturing                                    3,045,212         1.3 
Business Software                                         2,959,551         1.3 
Semiconductors &                                                                
  Related Equipment                                      2,786,000         1.2
Internet Related                                          2,557,526         1.1 
Transaction Processors                                    2,291,960         1.0 
Advertising                                               1,028,174         0.4 
--------------------------------------------------------------------------------
                                                        62,950,368        27.2
HEALTHCARE                                                                      
Services                                                  8,722,492         3.8 
Pharmaceuticals                                           3,140,506         1.3 
Biotechnology/Drug Delivery                               2,233,138         1.0 
--------------------------------------------------------------------------------
                                                        14,096,136         6.1
CONSUMER GOODS/SERVICES                                                         
Retail                                                    9,280,172         4.0 
Durable Goods                                             8,106,788         3.5 
Food                                                      6,546,522         2.8 
Electronics                                               4,048,338         1.8 
Leisure Products                                          1,785,029         0.8 
Nondurables                                               1,704,038         0.7 
Goods Distribution                                        1,287,409         0.6 
Cruise Lines                                              1,144,575         0.5 
Apparels                                                    583,783         0.3 
Furniture & Textiles                                         11,924         0.0 
--------------------------------------------------------------------------------
                                                        34,498,578        15.0

                                                              Value      Percent
--------------------------------------------------------------------------------
FINANCE                                                                         
Insurance                                                $7,375,275         3.2%
Money Management                                          4,422,457         1.9 
Banks                                                     2,635,578         1.1 
Credit Cards                                              1,628,825         0.7 
Savings & Loans                                           1,179,265         0.5 
Other Finance Companies                                     406,732         0.2 
--------------------------------------------------------------------------------
                                                        17,648,132         7.6

--------------------------------------------------------------------------------
INDUSTRIAL GOODS/SERVICES                                                       
Other Industrial Services                                16,105,975         7.0 
Outsourcing & Training Services                          14,431,086         6.3 
Industrial Materials                                      7,969,490         3.5 
Construction                                              4,591,901         2.0 
Machinery                                                 2,553,384         1.1 
Conglomerates                                             1,721,412         0.7 
Steel                                                     1,435,500         0.6 
--------------------------------------------------------------------------------
                                                        48,808,748        21.2

--------------------------------------------------------------------------------
ENERGY/MINERALS                                                                 
Oil Services                                              8,548,942         3.7 
Oil Refining/Marketing/Distribution                       5,831,838         2.5 
Independent Power                                         3,568,987         1.6 
Non-Ferrous Metals                                        3,378,527         1.5 
Oil/Gas Producers                                           478,787         0.2 
--------------------------------------------------------------------------------
                                                        21,807,081         9.5

--------------------------------------------------------------------------------
OTHER                                                                           
Transportation                                            7,864,015         3.4 
Regulated Utilities                                       5,902,795         2.6 
Real Estate                                               3,659,891         1.6 
--------------------------------------------------------------------------------
                                                        17,426,701         7.6

--------------------------------------------------------------------------------
TOTAL COMMON STOCKS                                     217,235,744        94.2 

--------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS                                   15,194,821         6.6 

--------------------------------------------------------------------------------
TOTAL INVESTMENTS:                                      232,430,565       100.8 

--------------------------------------------------------------------------------
CASH AND OTHER ASSETS                                                           
LESS LIABILITIES                                         (1,804,152)       (0.8)
--------------------------------------------------------------------------------
NET ASSETS                                             $230,626,413       100.0%
================================================================================

See accompanying notes to financial statements.                                 

22

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WANGER TWENTY                         STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          
COMMON STOCKS-94.4%                                           

INFORMATION-39.1%                                             
--------------------------------------------------------------------------------
TELEVISION PROGRAMMING-8.7%                                   
76,000   Liberty Media Group, AT&T (b)                                $1,064,000
CATV & Satellite Dish Programming                             
17,000   Cablevision Systems (b)                                         806,650
NYC Area CATV Franchises                                      
--------------------------------------------------------------------------------
                                                                       1,870,650

--------------------------------------------------------------------------------
TELECOMMUNICATIONS-3.1%                                       
30,000   Comverse Technology (b)                                         671,100
Voicemail & Related Systems                                   

--------------------------------------------------------------------------------
BUSINESS INFORMATION/MARKETING                                
SERVICES/PUBLISHING-11.9%                                     
40,000   H & R Block                                                   1,788,000
Tax Preparation                                               
15,000   Choicepoint (b)                                                 760,350
Fraud Protection Information                                  
--------------------------------------------------------------------------------
                                                                       2,548,350

--------------------------------------------------------------------------------
BUSINESS SOFTWARE-3.8%                                        
50,000   JD Edwards (b)                                                  822,500
Mid Market ERP & Supply Chain Software                        

--------------------------------------------------------------------------------
GAMING EQUIPMENT-3.8%                                         
12,000   International Game Technology (b)                               819,600
Slot Machines & Progressive Jackpots                          

--------------------------------------------------------------------------------
CONTRACT MANUFACTURING-2.4%                                   
45,000   Solectron (b)                                                   507,600
Electronic Manufacturing Services                             

--------------------------------------------------------------------------------
INSTRUMENTATION-5.4%                                          
17,000   Waters (b)                                                      658,750
Chromatography, Mass Spectrometry, Thermal Analysis           
19,000   Tektronix (b)                                                   489,820
Analytical Instruments                                        
--------------------------------------------------------------------------------
                                                                       1,148,570

--------------------------------------------------------------------------------
         INFORMATION-TOTAL                                             8,388,370

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

HEALTH CARE-21.4%                                             
--------------------------------------------------------------------------------
HOSPITAL/LABORATORY SUPPLIES-2.9%                             
17,000   Techne (b)                                                     $626,450
Cytokines, Antibodies, Other Reagents                         
For Life Sciences                                             

--------------------------------------------------------------------------------
PHARMACEUTICALS-5.2%                                          
40,000   Immunex (b)                                                   1,108,400
Drugs For Autoimmune Diseases, Cancer                         

--------------------------------------------------------------------------------
MEDICAL EQUIPMENT-8.4%                                        
75,000   Boston Scientific (b)                                         1,809,000
Stents & Catheters                                            

--------------------------------------------------------------------------------
SERVICES-4.9%                                                 
42,000   First Health Group (b)                                        1,039,080
PPO Network                                                   
--------------------------------------------------------------------------------
         HEALTH CARE-TOTAL                                             4,582,930

CONSUMER GOODS/SERVICES-10.6%                                 
--------------------------------------------------------------------------------
FURNITURE-3.0%                                                
27,000   Herman Miller                                                   638,820
Office Furniture                                              

--------------------------------------------------------------------------------
APPAREL-3.1%                                                  
20,000   Jones Apparel  (b)                                              663,400
Women's Apparel                                               

--------------------------------------------------------------------------------
LEISURE VEHICLES-4.5%                                         
18,000   Harley-Davidson                                                 977,580
Motorcycles & Related Merchandise                             
--------------------------------------------------------------------------------
         CONSUMER GOODS/SERVICES-TOTAL                                 2,279,800

FINANCE-15.6%                                                 
--------------------------------------------------------------------------------
MONEY MANAGEMENT-2.7%                                         
13,000   SEI Investments                                                 586,430
Mutual Fund Administration                                    

--------------------------------------------------------------------------------

See accompanying notes to financial statements.                                 

23

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WANGER TWENTY                         STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
INSURANCE-4.2%                                                
 5,000   Markel (b)                                                     $898,250
Specialty Insurance                                           

--------------------------------------------------------------------------------
BANKS-8.7%                                                    
28,000   Associated Banc-Corp                                            988,120
Midwest Bank                                                  
18,000   TCF Financial                                                   863,640
Great Lakes Bank                                              
--------------------------------------------------------------------------------
                                                                       1,851,760

--------------------------------------------------------------------------------
         FINANCE-TOTAL                                                 3,336,440

INDUSTRIAL GOODS/SERVICES-5.3%                                
--------------------------------------------------------------------------------
20,000   LOGISTICS-5.3%                                                         
         Expeditors International of Washington                        1,139,000
International Freight Forwarder                               
--------------------------------------------------------------------------------
         INDUSTRIAL GOODS/SERVICES-TOTAL                               1,139,000

ENERGY/MINERALS-2.4%                                          
--------------------------------------------------------------------------------
DISTRIBUTION/MARKETING/REFINING-2.4%                          
20,000   Dynegy                                                          510,000
Energy Trading & Generation                                   
--------------------------------------------------------------------------------
         ENERGY/MINERALS-TOTAL                                           510,000

TOTAL COMMON STOCKS (COST:  $15,476,927)-94.4%                        20,236,540
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Principal                                                                  Value
Amount                                                                          

SHORT TERM OBLIGATIONS-6.2%                                                     
--------------------------------------------------------------------------------
Yield 1.65% - 1.80% due 1/02 - 1/03/02                      
$527,000  Prudential Funding                                            $526,951
 808,000  Amgen Financial                                                807,960
--------------------------------------------------------------------------------
(AMORTIZED COST:  $1,334,911)                                          1,334,911

TOTAL INVESTMENTS  (COST:  $16,811,838) (a)-100.6%                    21,571,451
--------------------------------------------------------------------------------

CASH AND OTHER ASSETS LESS LIABILITIES-(0.6%)                          (142,006)
--------------------------------------------------------------------------------

TOTAL NET ASSETS-100%                                                $21,429,445
================================================================================

--------------------------------------------------------------------------------

NOTES TO STATEMENT OF INVESTMENTS:                                        

(a)  At December 31, 2001, cost for federal income tax purposes is the same and 
   net unrealized appreciation was $4,759,613 consisting of gross unrealized
   appreciation of $5,132,646 and gross unrealized depreciation of $373,033.

(b)  Non-income producing security.                                             

See accompanying notes to financial statements.                                 

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WANGER FOREIGN FORTY                  STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          
COMMON STOCKS-93.9%                                           

EUROPE-58.8%                                                  
--------------------------------------------------------------------------------
GERMANY-7.6%                                                  
12,000   Rhoen-Klinikum                                                 $625,482
Hospital Management                                           
12,000   Deutsche Boerse                                                 475,794
Trading, Clearing & Settlement Services                       
for Financial Markets                                         
 1,300   Henkel                                                           72,973
Chemicals, Detergents & Non-Food Consumer Brands              
--------------------------------------------------------------------------------
                                                                       1,174,249

--------------------------------------------------------------------------------
NORWAY-1.1%                                                   
10,000   Orkla                                                           169,660
Consumer Goods & Chemicals Holding Company                    

--------------------------------------------------------------------------------
FRANCE/BELGIUM-7.7%                                           
 3,600   Technip                                                         481,140
Global Oil Engineering & Construction                         
 7,000   AGF                                                             336,174
Life & Health Insurance                                       
 6,900   RTL (Belgium)                                                   271,122
TV & Radio Broadcaster                                        
 5,000   Euronext (b)                                                     94,669
Trading, Clearing & Settlement Services                       
for Financial Markets                                         
--------------------------------------------------------------------------------
                                                                       1,183,105

--------------------------------------------------------------------------------
NETHERLANDS-7.1%                                              
30,112   TNT Post Group                                                  651,964
Postal Service & Parcel Delivery                              
17,000   Fortis                                                          440,778
Financial Services Conglomerate                               
--------------------------------------------------------------------------------
                                                                       1,092,742

--------------------------------------------------------------------------------
UNITED KINGDOM/IRELAND-16.2%                                  
70,000   Irish Life & Permanent (Ireland)                                711,018
Savings Products                                              
80,000   Smith & Nephew                                                  483,097
Medical Equipment & Supplies                                  

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

--------------------------------------------------------------------------------
UNITED KINGDOM/IRELAND-16.2% (CONT)                           
63,000   Alliance Unichem                                               $475,999
Pharmaceutical Wholesaler & Retailer                          
 55,000  Capita Group                                                    391,244
Outsourcing Services                                          
55,000   Serco Group                                                     288,267
Facilities Management                                         
 3,200   Elan (Ireland) (b)                                              144,192
Specialty Drug Discovery & Delivery                           
--------------------------------------------------------------------------------
                                                                       2,493,817

--------------------------------------------------------------------------------
SWITZERLAND-11.6%                                             
   900   Synthes-Stratec                                                 627,087
Products for Orthopedic Surgery                               
   220   Pargesa                                                         434,935
Industrial & Media Conglomerate                               
 1,000   Givaudan                                                        304,985
Industrial Fragrances & Flavors                               
13,000   Cie Fin Richemont                                               241,727
Luxury Goods, Tobacco & Pay TV                                
   550   Julius Baer                                                     185,643
Private Banking, Brokerage & Mutual Funds                     
--------------------------------------------------------------------------------
                                                                       1,794,377

--------------------------------------------------------------------------------
ITALY-7.5%                                                    
60,000   Autogrill                                                       556,519
Restaurants & Catering for Travelers                          
45,000   Banca Fideuram                                                  360,454
Life Insurance/Mutual Funds                                   
50,000   Saipem                                                          245,025
Offshore Oil Construction & Drilling                          
--------------------------------------------------------------------------------
                                                                       1,161,998

--------------------------------------------------------------------------------
         EUROPE-TOTAL                                                  9,069,948

25

See accompanying notes to financial statements.                                 

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WANGER FOREIGN FORTY                  STATEMENT OF INVESTMENTS DECEMBER 31, 2001

--------------------------------------------------------------------------------
Number of                                                                  Value
Shares                                                                          

ASIA-21.0%                                                    
--------------------------------------------------------------------------------
HONG KONG-1.5%                                                
200,000  Li & Fung                                                      $224,402
Sourcing of Consumer Goods                                    

--------------------------------------------------------------------------------
JAPAN-15.0%                                                   
 3,800   Nintendo                                                        662,237
Entertainment Software & Hardware                             
 6,000   Orix                                                            534,892
Finance Leasing                                               
 6,500   Oriental Land                                                   444,719
Disney Theme Park Operator                                    
19,000   Banyu Pharmaceutical                                            281,343
Ethical Drug Producer                                         
 7,600   Konami                                                          224,497
Entertainment Software                                        
 8,000   KAO                                                             165,540
Consumer Products                                             
--------------------------------------------------------------------------------
                                                                       2,313,228

--------------------------------------------------------------------------------
TAIWAN-2.6%                                                   
41,500   United Microelectronics (b)                                     398,400
Semiconductor Foundry                                         

--------------------------------------------------------------------------------
SINGAPORE-1.9%                                                
28,000   Venture Manufacturing                                           201,679
Electronic Manufacturing Services                             
267,300  Star Cruises (b)                                                100,238
Cruise Lines                                                  
--------------------------------------------------------------------------------
                                                                         301,917

--------------------------------------------------------------------------------
         ASIA-TOTAL                                                    3,237,947

--------------------------------------------------------------------------------
Principal Amount or                                                        Value
Number of Shares                                                                

OTHER COUNTRIES-14.1%                                         
--------------------------------------------------------------------------------
AUSTRALIA-2.1%                                                
120,000  Computershare                                                  $323,484
Financial Software/Services                                   

--------------------------------------------------------------------------------
CANADA-7.8%                                                   
37,000   Investors Group                                                 592,614
Mutual Funds                                                  
10,800   Talisman Energy                                                 410,401
Oil & Gas Producer                                            
 5,000   Celestica (b)                                                   200,992
Electronic Manufacturing Services                             
--------------------------------------------------------------------------------
                                                                       1,204,007

--------------------------------------------------------------------------------
ISRAEL-4.2%                                                   
19,200   Amdocs (b)                                                      652,224
Telecommunications Billing & Customer Care Software           

--------------------------------------------------------------------------------
         OTHER-TOTAL                                                   2,179,715

TOTAL COMMON STOCKS (COST $15,498,293)-93.9%                          14,487,610
--------------------------------------------------------------------------------

SHORT-TERM OBLIGATIONS-9.4%                                                     
--------------------------------------------------------------------------------
Yield 1.70% - 1.77% Due 1/2 - 1/3/02                          
$753,000 Amgen                                                           752,926
 701,000 Prudential Funding                                              700,967
--------------------------------------------------------------------------------
(AMORTIZED COST: $1,453,893)                                           1,453,893

TOTAL INVESTMENTS (COST: $16,952,186) (a)-103.3%                      15,941,503
--------------------------------------------------------------------------------

CASH AND OTHER ASSETS LESS LIABILITIES-(3.3%)                          (510,380)
--------------------------------------------------------------------------------

TOTAL NET ASSETS-100%                                                $15,431,123
--------------------------------------------------------------------------------

NOTES TO STATEMENT OF INVESTMENTS:                                        

(a)  At December 31, 2001, cost for federal income tax purposes is $16,973,642  
and net unrealized depreciation was $1,032,139 consisting of gross    
  unrealized appreciation of $826,396 and gross unrealized depreciation of
$1,858,535.                                                           

(b)  Non-income producing security.                                             

(c)  At December 31, 2001, $4,910,611 or 31.8% of the Fund's net assets was     
denominated in the Euro currency.                                     

See accompanying notes to financial statements.                                 

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WANGER FOREIGN FORTY                 PORTFOLIO DIVERSIFICATION DECEMBER 31, 2001

AT DECEMBER 31, 2001, THE FUND'S PORTFOLIO OF INVESTMENTS AS A PERCENTAGE OF NET
ASSETS WAS DIVERSIFIED AS FOLLOWS:                                              

                                               Value                     Percent
--------------------------------------------------------------------------------
INFORMATION TECHNOLOGY                                                          
Computer Related Hardware                                                       
Contract Manufacturing                      $402,671                        2.6%
Semiconductors &                                                                
  Related Equipment                         398,400                        2.6
--------------------------------------------------------------------------------
                                            801,071                        5.2
Media                                                                           
TV Broadcasting                              271,122                        1.8 
--------------------------------------------------------------------------------
                                            271,122                        1.8
Software and Services                                                           
Transaction Processors                       893,947                        5.8 
Business Software                            652,224                        4.2 
--------------------------------------------------------------------------------
                                          1,546,171                       10.0
--------------------------------------------------------------------------------
                                          2,618,364                       17.0

--------------------------------------------------------------------------------
HEALTH CARE                                                                     
Medical Equipment                          1,110,184                        7.2 
Pharmaceutical                               901,533                        5.8 
Hospital Management                          625,482                        4.1 
--------------------------------------------------------------------------------
                                          2,637,199                       17.1

--------------------------------------------------------------------------------
CONSUMER GOODS/SERVICES                                                         
Consumer Software                            886,734                        5.8 
Consumer Services                            651,964                        4.2 
Restaurants                                  556,519                        3.6 
Nondurables                                  480,241                        3.1 
Entertainment                                444,719                        2.9 
Food                                         169,660                        1.1 
Cruise Lines                                 100,238                        0.6 
--------------------------------------------------------------------------------
                                          3,290,075                       21.3

                                               Value                     Percent
--------------------------------------------------------------------------------
FINANCE                                                                         
Insurance                                 $1,487,970                        9.6%
Money Management                           1,138,710                        7.4 
Finance Companies                            534,892                        3.5 
--------------------------------------------------------------------------------
                                          3,161,572                       20.5

--------------------------------------------------------------------------------
INDUSTRIAL GOODS/SERVICES                                                       
Outsourcing                                  903,914                        5.9 
Construction                                 481,140                        3.1 
Conglomerates                                434,935                        2.8 
Speciality Chemicals                         304,985                        2.0 
--------------------------------------------------------------------------------
                                          2,124,974                       13.8

--------------------------------------------------------------------------------
ENERGY/MINERALS                                                                 
Oil/Gas Producers                            410,401                        2.6 
Oil Services                                 245,025                        1.6 
--------------------------------------------------------------------------------
                                            655,426                        4.2
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS                       14,487,610                       93.9 

SHORT-TERM OBLIGATIONS                     1,453,893                        9.4 
--------------------------------------------------------------------------------

TOTAL INVESTMENTS                         15,941,503                      103.3 
--------------------------------------------------------------------------------

CASH AND OTHER ASSETS                                                           
LESS LIABILITIES                            (510,380)                      (3.3)
--------------------------------------------------------------------------------
NET ASSETS                               $15,431,123                        100%

================================================================================

See accompanying notes to financial statements.                                 

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--------------------------------------------------------------------------------

SPECIAL NOTICE

    At a special meeting held on October 24, 2001, shareholders of
each of the Funds voted to approve an investment advisory agreement         
between the Trust and Liberty Wanger Asset Management, L.P. (WAM). The      
record date share position of each Fund and the total share position        
voted of each Fund were respectively: Wanger U.S. Small Cap                 
21,337,848.412 and 21,337,848.412; Wanger International Small Cap           
14,820,663.583 and 14,820,663.583; Wanger Twenty 1,258,477.526 and          
1,258,477.526; and Wanger Foreign Forty 1,263,843.818 and                   
1,263,843.818.                                                              

The outcome of the votes were as follows:                                   

APPROVAL OF INVESTMENT ADVISORY AGREEMENT                                   

                                               FOR        AGAINST        ABSTAIN
                                       -----------    ----------     -----------
    Wanger U.S. Small Cap           19,893,385.531    527,810.025    916,652.856
    Wanger International Small Cap  13,824,957.614    340,731.583    654,974.386
    Wanger Twenty                    1,192,889.528      9,305.955     56,282.043
    Wanger Foreign Forty             1,215,467.255     18,181.705     30,194.858

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WANGER ADVISORS FUNDS                                                           

> STATEMENTS OF ASSETS AND LIABILITIES                                  

> STATEMENTS OF OPERATIONS                                              

> STATEMENTS OF CHANGES IN NET ASSETS                                   

> FINANCIAL HIGHLIGHTS                                                  

> NOTES TO FINANCIAL STATEMENTS                                         

29

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--------------------------------------------------------------------------------                                                    

STATEMENTS OF ASSETS AND LIABILITIES                                                                                                
DECEMBER 31, 2001                                                                                                                   


                                                                              WANGER          WANGER         WANGER          WANGER 
                                                                      U.S. SMALL CAP   INTERNATIONAL         TWENTY         FOREIGN 
                                                                                           SMALL CAP                          FORTY 
----------------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                                    
ASSETS                                                                                                                              
Investments, at value (cost: Wanger U.S. Small Cap $371,593,106;        $497,955,035    $232,430,565    $21,571,451     $15,941,503 
   Wanger International Small Cap $257,087,975; Wanger Twenty                                                                       
   $16,811,838; Wanger Foreign Forty $16,952,186)                                                                                   
Cash                                                                             432             926            789              -- 
Foreign Currency (cost: Wanger International Small Cap $7,278,093;                --       7,040,460             --          98,760 
   Wanger Foreign Forty $102,681)                                                                                                   
Receivable for:                                                                                                                     
   Investments sold                                                            6,612          44,224             --         713,820 
   Fund shares sold                                                          717,057         157,804         73,349          28,099 
   Dividends and interest                                                     30,125         274,955          7,379          14,814 
Other assets                                                                   7,488           2,761            188             170 
----------------------------------------------------------------------------------------------------------------------------------- 
   Total Assets                                                          498,716,749     239,951,695     21,653,156      16,797,166 

LIABILITIES                                                                                                                         
Payable to Custodian                                                              --              --             --         134,239 
Payable for:                                                                                                                        
   Investments purchased                                                      23,488       2,350,702        178,018         616,565 
   Fund shares repurchased                                                   466,896       6,779,984         16,028         582,005 
   Transfer agent fees                                                         1,707           1,666          1,529           1,530 
Other liabilities                                                             38,515         192,930         28,136          31,704 
----------------------------------------------------------------------------------------------------------------------------------- 
   Total Liabilities                                                         530,606       9,325,282        223,711       1,366,043 
----------------------------------------------------------------------------------------------------------------------------------- 
Net Assets                                                              $498,186,143    $230,626,413    $21,429,445     $15,431,123 
=================================================================================================================================== 
COMPOSITION OF NET ASSETS                                                                                                           
Paid in capital                                                         $405,901,024    $318,567,708    $17,908,609     $20,791,808 
Overdistributed net investment income or                                                                                            
   Accumulated net investment loss                                                --         (44,843)            --            (807)
Accumulated net realized loss                                            (34,076,810)    (61,236,534)    (1,238,777)     (4,340,024)
Net unrealized appreciation (depreciation) on:                                                                                      
   Investments (net of prior year unrealized PFIC gains of                                                                          
   $1,766,924 for Wanger International Small Cap and                                                                                
   $10,385 for Wanger Foreign Forty)                                     126,361,929     (26,424,334)     4,759,613      (1,021,068)
   Foreign currency transactions                                                  --        (235,584)            --           1,214 
----------------------------------------------------------------------------------------------------------------------------------- 
Net Assets                                                              $498,186,143    $230,626,413    $21,429,445     $15,431,123 
=================================================================================================================================== 
Fund shares outstanding                                                   22,395,356      14,970,881      1,394,693       1,325,917 
=================================================================================================================================== 
Net asset value, offering price and redemption price per share          $      22.25    $      15.40    $     15.36     $     11.64 
=================================================================================================================================== 

See accompanying notes to financial statements.                                                                                     

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--------------------------------------------------------------------------------                                                    

STATEMENTS OF OPERATIONS                                                                                                            
FOR THE YEAR ENDED DECEMBER 31, 2001                                                                                                

                                                                              WANGER          WANGER         WANGER          WANGER 
                                                                      U.S. SMALL CAP   INTERNATIONAL         TWENTY         FOREIGN 
                                                                                           SMALL CAP                          FORTY 
----------------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                                    
INVESTMENT INCOME:                                                                                                                  
Dividend income (net of foreign taxes of $422,738 for Wanger              $2,037,145      $3,114,080        $93,141        $134,600 
International Small Cap and $18,416 for Wanger Foreign Forty)                                                                       
Interest income                                                            1,430,687         679,049         67,997          65,527 
------------------------------------------------------------------------------------------------------------------------------------
   Total Investment Income                                                 3,467,832       3,793,129        161,138         200,127 

EXPENSES:                                                                                                                           
Management fees                                                            4,127,294       3,083,791        153,808         160,523 
Custody fees                                                                  32,871         269,695          4,228          21,932 
Legal and audit fees                                                          60,696          49,494         17,389          17,000 
Reports to shareholders                                                        7,825          63,977         11,913          10,904 
Transfer agent fees                                                           20,067          19,439         18,430          18,465 
Trustees' fees                                                                80,005          49,738          2,217           3,720 
Other expenses                                                                23,403          19,352          7,887             736 
------------------------------------------------------------------------------------------------------------------------------------
   Total Expenses                                                          4,352,161       3,555,486        215,872         233,280 
Less custody fees paid indirectly                                                 --            (972)          (239)           (503)
------------------------------------------------------------------------------------------------------------------------------------
   Net Expenses                                                            4,352,161       3,554,514        215,633         232,777 
------------------------------------------------------------------------------------------------------------------------------------
   Net Investment Income (Loss)                                             (884,329)        238,615        (54,495)        (32,650)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON                                                                                          
   PORTFOLIO POSITIONS:                                                                                                             
Net realized loss on:                                                                                                               
   Investments                                                           (25,956,670)    (55,509,464)      (613,846)     (3,753,837)
   Foreign currency transactions                                                  --        (451,686)            --          (7,184)
------------------------------------------------------------------------------------------------------------------------------------
       Net realized loss                                                 (25,956,670)    (55,961,150)      (613,846)     (3,761,021)
------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on:                                                                            
   Investments                                                            74,197,950      (1,274,895)     2,426,419        (879,511)
   Foreign currency transactions                                                  --        (161,249)            --          19,288 
------------------------------------------------------------------------------------------------------------------------------------
       Net change in unrealized appreciation (depreciation)               74,197,950      (1,436,144)     2,426,419        (860,223)
------------------------------------------------------------------------------------------------------------------------------------
       Net Gain (Loss)                                                    48,241,280     (57,397,294)     1,812,573      (4,621,244)
------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations                    $47,356,951    $(57,158,679)    $1,758,078     $(4,653,894)
====================================================================================================================================

See accompanying notes to financial statements.                                                                                     

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--------------------------------------------------------------------------------                                                    
STATEMENTS OF CHANGES IN NET ASSETS                                                                                                 

                                                               WANGER U.S. SMALL CAP                WANGER INTERNATIONAL SMALL CAP  

                                                               Year ended         Year ended         Year ended         Year ended  
INCREASE (DECREASE) IN NET ASSETS                       December 31, 2001  December 31, 2000  December 31, 2001  December 31, 2000  
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:                                                                                                                         
                                                                                                                                    
   Net investment income (loss)                                 $(884,329)          $275,228           $238,615        $(2,298,142) 
   Net realized gain (loss) on investments and                                                                                      
      foreign currency transactions                           (25,956,670)        (7,234,589)       (55,961,150)        73,196,254  
   Net change in unrealized appreciation                                                                                            
       (depreciation) on investments                                                                                                
       and foreign currency transactions                       74,197,950        (24,916,759)        (1,436,144)      (174,794,354) 
------------------------------------------------------------------------------------------------------------------------------------
   Net increase (decrease) in net assets                                                                                            
        resulting from operations                              47,356,951        (31,876,120)       (57,158,679)      (103,896,242) 
DISTRIBUTIONS TO SHAREHOLDERS FROM:                                                                                                 
   Net investment income                                         (275,386)          (482,170)                --                 --  
   Net realized gain                                                   --        (49,642,751)       (78,693,586)       (39,240,076) 
------------------------------------------------------------------------------------------------------------------------------------
   Total distributions to shareholders                           (275,386)       (50,124,921)       (78,693,586)       (39,240,076) 
SHARE TRANSACTIONS:                                                                                                                 
   Subscriptions                                              108,000,641         88,487,383        517,577,408        294,589,657  
   Distributions reinvested                                       275,386         50,124,921         78,693,586         39,240,076  
   Redemptions                                               (60,476,971)        (44,015,214)      (501,467,052)      (230,349,651) 
------------------------------------------------------------------------------------------------------------------------------------
   Net Increase from Share Transactions                        47,799,056         94,597,090         94,803,942        103,480,082  
------------------------------------------------------------------------------------------------------------------------------------
   Total Increase (Decrease) in Net Assets                     94,880,621         12,596,049        (41,048,323)       (39,656,236) 
NET ASSETS:                                                                                                                         
   Beginning of period                                        403,305,522        390,709,473        271,674,736        311,330,972  
------------------------------------------------------------------------------------------------------------------------------------
   End of period                                             $498,186,143       $403,305,522       $230,626,413       $271,674,736  
------------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT INCOME                                                                                                 
   (OVERDISTRIBUTED NET INVESTMENT INCOME                                                                                           
   OR ACCUMULATED NET INVESTMENT LOSS)                                 --           $274,901           $(44,843)                --  
====================================================================================================================================

See accompanying notes to financial statements.                                                                                     

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                                   Wanger Advisors Trust      2001 Annual Report                                                    
--------------------------------------------------------------------------------                                                    
STATEMENTS OF CHANGES IN NET ASSETS                                                                                                 

                                                                    WANGER TWENTY                   WANGER FOREIGN FORTY            

                                                              Year ended         Year ended         Year ended         Year ended   
INCREASE (DECREASE) IN NET ASSETS                      December 31, 2001  December 31, 2000  December 31, 2001  December 31, 2000   
---------------------------------------------------------------------------------------------------------------------------------   
OPERATIONS:                                                                                                                         
                                                                                                                                    
   Net investment income (loss)                                 $(54,495)          $(21,230)          $(32,650)          $(21,797)  
   Net realized gain (loss) on investments and                                                                                      
      foreign currency transactions                             (613,846)          (610,947)        (3,761,021)           763,879   
   Net change in unrealized appreciation                                                                                            
       (depreciation) on investments                                                                                                
       and foreign currency transactions                       2,426,419          1,563,675           (860,223)        (1,795,255)  
---------------------------------------------------------------------------------------------------------------------------------   
   Net increase (decrease) in net assets                                                                                            
        resulting from operations                              1,758,078            931,498         (4,653,894)        (1,053,173)  
DISTRIBUTIONS TO SHAREHOLDERS FROM:                                                                                                 
   Net investment income                                              --                 --            (20,439)            (3,779)  
   Net realized gain                                                  --           (294,125)        (1,311,409)          (402,719)  
---------------------------------------------------------------------------------------------------------------------------------   
   Total distributions to shareholders                                --           (294,125)        (1,331,848)          (406,498)  
SHARE TRANSACTIONS:                                                                                                                 
   Subscriptions                                              10,836,793          7,467,271         66,745,612         15,240,646   
   Distributions reinvested                                           --            294,125          1,331,848            406,498   
   Redemptions                                                (3,294,809)        (2,839,517)       (62,156,191)        (4,518,005)  
---------------------------------------------------------------------------------------------------------------------------------   
   Net Increase from Share Transactions                        7,541,984          4,921,879          5,921,269         11,129,139   
---------------------------------------------------------------------------------------------------------------------------------   
   Total Increase (Decrease) in Net Assets                     9,300,062          5,559,252            (64,473)         9,669,468   
NET ASSETS:                                                                                                                         
   Beginning of period                                        12,129,383          6,570,131         15,495,596          5,826,128   
---------------------------------------------------------------------------------------------------------------------------------   
   End of period                                             $21,429,445        $12,129,383        $15,431,123        $15,495,596   
---------------------------------------------------------------------------------------------------------------------------------   
UNDISTRIBUTED NET INVESTMENT INCOME                                                                                                 
   (OVERDISTRIBUTED NET INVESTMENT INCOME                                                                                           
   OR ACCUMULATED NET INVESTMENT LOSS)                                --                 --              $(807)           $20,339   
=================================================================================================================================   


See accompanying notes to financial statements.                                 

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                                   Wanger Advisors Trust      2001 Annual Report                                           
--------------------------------------------------------------------------------                                           
WANGER U.S. SMALL CAP              FINANCIAL HIGHLIGHTS                                                                    

                                                                           Year  ended December 31,                        
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD    2001        2000       1999        1998        1997        
---------------------------------------------------------------------------------------------------------------------------
                                                                                                                           
NET ASSET VALUE, BEGINNING OF PERIOD                          $19.99      $24.88      $22.18     $21.46      $16.97        
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:                                                                                         
Net investment income (loss) (a)                               (0.04)       0.02        0.03      (0.05)      (0.02)       
Net realized and unrealized gain (loss) on investments          2.31       (1.82)       4.79       1.93        4.90        
---------------------------------------------------------------------------------------------------------------------------
   Total from Investment Operations                             2.27       (1.80)       4.82       1.88        4.88        
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:                                                                               
From net investment income                                     (0.01)      (0.03)         --         --          --        
From net realized capital gains                                   --       (3.06)      (2.12)     (1.16)      (0.39)       
---------------------------------------------------------------------------------------------------------------------------
Total Distributions Declared to Shareholders                   (0.01)      (3.09)      (2.12)     (1.16)      (0.39)       
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD                                $22.25      $19.99      $24.88     $22.18      $21.46        
===========================================================================================================================
Total Return (b)                                               11.39%      (8.16)%     25.06%      8.68%      29.41%       
---------------------------------------------------------------------------------------------------------------------------

RATIOS TO AVERAGE NET ASSETS:                                                                                              
Expenses                                                        0.99%       1.00%(c)    1.02%(c)   1.02%(c)    1.06%(d)    
Net investment income (loss)                                   (0.20)%      0.07%(c)    0.14%(c)  (0.25)%(c)  (0.10)%(d)   
Portfolio turnover rate                                           18%         36%         35%        34%         34%       
Net assets, end of period (000's)                           $498,186    $403,306    $390,709   $339,119    $270,866        

--------------------------------------------------------------------------------                                           

(a)  Net investment income (loss) per share was based upon the average shares   
outstanding during the period.                                        

(b)  Total return at net asset value assuming all distributions are reinvested. 

(c)  The benefits derived from custody fees paid indirectly had no impact.      

(d)  In accordance with a requirement of the Securities and Exchange Commission,
   this ratio reflects total expenses prior to the reduction of custody fees
for cash balances it maintains with the custodian ("custody fees paid 
  indirectly"). The ratios of expenses to average daily net assets and net
investment income to average daily net assets net of custody fees paid
  indirectly would have been 1.04% and (0.08%), respectively, for the year
ended December 31, 1997.                                              

See accompanying notes to financial statements.                                 

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--------------------------------------------------------------------------------                                           
WANGER INTERNATIONAL SMALL CAP     FINANCIAL HIGHLIGHTS                                                                    

                                                                           Year  ended December 31,                        
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD   2001        2000        1999        1998       1997         
---------------------------------------------------------------------------------------------------------------------------
                                                                                                                           
NET ASSET VALUE, BEGINNING OF PERIOD                          $28.53      $43.67      $19.62     $17.05      $17.71        
---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:                                                                                         
Net investment income (loss) (a)                                0.02       (0.26)      (0.13)      0.03        0.02        
Net realized and unrealized gain (loss) on investments                                                                     
   and foreign currency transactions                           (5.12)      (9.75)      24.52       2.76       (0.26)       
---------------------------------------------------------------------------------------------------------------------------
   Total from Investment Operations                            (5.10)     (10.01)      24.39       2.79       (0.24)       
---------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:                                                                               
From net investment income                                        --          --       (0.34)     (0.22)         --        
From net realized gain and unrealized gain reportable                                                                      
   for federal income taxes                                    (8.03)      (5.13)         --         --       (0.42)       
---------------------------------------------------------------------------------------------------------------------------
Total Distributions Declared to Shareholders                   (8.03)      (5.13)      (0.34)     (0.22)      (0.42)       
---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD                                $15.40      $28.53      $43.67     $19.62      $17.05        
===========================================================================================================================
Total Return (b)                                              (21.27)%    (27.84)%    126.37%     16.33%      (1.46)%      
---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:                                                                                              
Expenses                                                        1.43%(c)    1.41%(c)    1.49%(c)   1.55%(c)    1.60%(d)    
Net investment income (loss)                                    0.10%(c)   (0.68)%(c)  (0.49)%(c)  0.16%(c)    0.12%(d)    
Portfolio turnover rate                                           56%         67%         75%        56%         60%       
Net assets, end of period (000's)                           $230,626    $271,675    $311,331   $141,253    $120,660        

--------------------------------------------------------------------------------                                           


(a)  Net investment income (loss) per share was based upon the average shares   
outstanding during the period.                                        

(b)  Total return at net asset value assuming all distributions are reinvested. 

(c)  The benefits derived from custody fees paid indirectly had no impact.      

(d)  In accordance with a requirement of the Securities and Exchange Commission,
   this ratio reflects total expenses prior to the reduction of custody fees
for cash balances it maintains with the custodian ("custody fees paid 
  indirectly"). The ratios of expenses to average daily net assets and net
investment income to average daily net assets net of custody fees paid
indirectly would have been 1.59% and 0.13%, respectively, for the year
ended December 31, 1997.                                              

See accompanying notes to financial statements.                               

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                                   Wanger Advisors Trust      2001 Annual Report       
--------------------------------------------------------------------------------       
WANGER TWENTY                      FINANCIAL HIGHLIGHTS                                

                                                                         February 2,   
                                                                        1999 through   
SELECTED DATA FOR A SHARE                       Year ended December 31, December 31,   
OUTSTANDING THROUGHOUT EACH PERIOD                   2001        2000       1999       
---------------------------------------------------------------------------------------
                                                                                       
NET ASSET VALUE, BEGINNING OF PERIOD               $14.08     $13.43      $10.00       
---------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:                                                     
Net investment loss (a)                             (0.05)     (0.03)      (0.08)      
Net realized and unrealized gain on investments      1.33       1.23        3.51       
---------------------------------------------------------------------------------------
   Total from Investment Operations                  1.28       1.20        3.43       
---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:                                           
From net investment income                             --         --          --       
From net realized capital gains                        --      (0.55)         --       
---------------------------------------------------------------------------------------
Total Distributions Declared to Shareholders           --      (0.55)         --       
---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD                     $15.36     $14.08      $13.43       
=======================================================================================
Total Return (b)                                     9.09%      9.45%(c)   34.30%(c)(d)
---------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:                                                          
Expenses                                           1.33%(e)    1.39%(f)    1.41%(f)(g) 
Net investment loss                               (0.34)%(e)  (0.24)%(f)  (0.77)%(f)(g)
Reimbursement                                        --        0.21%       0.71%(g)    
Portfolio turnover rate                              76%         86%        113%(g)    
Net assets, end of period (000's)               $21,429     $12,129      $6,570        

--------------------------------------------------------------------------------       

(a)  Net investment loss per share was based upon the average shares outstanding
during the period.                                                    

(b)  Total return at net asset value assuming all distributions reinvested.     

(c)  Had the Advisor not reimbursed a portion of expenses, total return would   
have been reduced.                                                    

(d)  Not annualized.                                                            

(e)  The benefits derived from custody fees paid indirectly had no impact.      

(f)  In accordance with a requirement of the Securities and Exchange Commission,
   this ratio reflects total expenses prior to the reduction of custody fees
for cash balances it maintains with the custodian ("custody fees paid 
  indirectly"). The ratios of expenses to average daily net assets and net
investment income to average daily net assets net of custody fees paid
  indirectly would have been 1.35% and (0.20%), respectively, for the year
 ended December 31, 2000 and 1.35% and (0.71%), respectively, the period
ended December 31, 1999.                                              

(g)  Annualized.                                                                

See accompanying notes to financial statements.                                 

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                                   Wanger Advisors Trust      2001 Annual Report       
--------------------------------------------------------------------------------       
WANGER FOREIGN FORTY              FINANCIAL HIGHLIGHTS                                 

                                                                         February 2    
                                                                       1999 through    
SELECTED DATA FOR A SHARE                     Year ended December 31,   December 31,   
OUTSTANDING THROUGHOUT EACH PERIOD                  2001       2000         1999       
---------------------------------------------------------------------------------------
                                                                                       
NET ASSET VALUE, BEGINNING OF PERIOD               $17.29     $18.39      $10.00       
---------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:                                                     
Net investment loss (a)                             (0.03)     (0.04)      (0.01)      
Net realized and unrealized gain on investments                                        
   and foreign currency transactions                (4.46)     (0.10)       8.40       
---------------------------------------------------------------------------------------
   Total from Investment Operations                 (4.49)     (0.14)       8.39       
---------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS:                                           
From net investment income                          (0.02)     (0.01)         --       
From net realized capital gains                     (1.14)     (0.95)         --       
---------------------------------------------------------------------------------------
Total Distributions Declared to Shareholders        (1.16)     (0.96)         --       
---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD                     $11.64     $17.29      $18.39       
=======================================================================================
Total Return (b)                                   (26.61)%    (1.58)%(c)  83.90%(c)(d)
---------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:                                                          
Expenses                                            1.45%(e)   1.45%(e)    1.59%(f)(g) 
Net investment loss                                (0.20)%(e) (0.20)%(e)  (0.10)%(f)(g)
Reimbursement                                         --       0.23%       1.86%(g)    
Portfolio turnover rate                               72%        96%         91%(g)    
Net assets, end of period (000's)                $15,431    $15,496      $5,826        

--------------------------------------------------------------------------------       

(a)  Net investment loss per share was based upon the average shares outstanding
during the period.                                                    

(b)  Total return at net asset value assuming all distributions reinvested.     

(c)  Had the Advisor not reimbursed a portion of expenses , total return would  
have been reduced.                                                    

(d)  Not annualized.                                                            

(e)  The benefits derived from custody fees paid indirectly had no impact.      

(f)  In accordance with a requirement of the Securities and Exchange Commission,
   this ratio reflects total expenses prior to the reduction of custody fees
for cash balances it maintains with the custodian ("custody fees paid 
  indirectly"). The ratios of expenses to average daily net assets and net
investment income to average daily net assets net of custody fees paid
  indirectly would have been 1.45% and 0.04%, respectively, for the period
ended December 31, 1999.                                              

(g)  Annualized.                                                                

See accompanying notes to financial statements.                                 

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--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS                                                   

1. NATURE OF OPERATIONS                                                         
Wanger U.S. Small Cap, Wanger International Small Cap, Wanger Twenty and Wanger 
Foreign Forty ("the Funds") are series of Wanger Advisors Trust ("the Trust"),  
an open-end management investment company organized as a Massachusetts business 
trust. The investment objective of each Fund is to seek long-term growth of     
capital. The Funds are available only for allocation to certain life insurance  
company separate accounts established for the purpose of funding qualified and  
non-qualified variable annuity contracts, and may also be offered directly to   
certain types of pension plans and retirement arrangements.                     

2. SIGNIFICANT ACCOUNTING POLICIES                                              

SECURITY VALUATION                                                              
Investments are stated at current value. Securities traded on securities        
exchanges or in over-the-counter markets in which transaction prices are        
reported are valued at the last sales price at the time of valuation. Securities
for which there are no reported sales on the valuation date are valued at the   
latest bid quotation. Money market instruments having a maturity of 60 days or  
less from the valuation date are valued on an amortized cost basis. Securities  
for which quotations are not readily available and any other assets are valued  
as determined in good faith by the Board of Trustees.                           

FOREIGN CURRENCY TRANSLATIONS                                                   
Values of investments denominated in foreign currencies are converted into U.S. 
dollars using the spot market rate of exchange at the time of valuation.        
Purchases and sales of investments and dividend and interest income are         
translated into U.S. dollars using the spot market rate of exchange prevailing  
on the respective dates of such transactions. The gain or loss resulting from   
changes in foreign exchange rates is included with net realized and unrealized  
gain or loss from investments, as appropriate.                                  

SECURITY TRANSACTIONS AND INVESTMENT INCOME                                     
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend date,   
except that certain dividends from foreign securities are recorded as soon as   
the information is available to the Fund. Interest income is recorded on the    
accrual basis and includes amortization of discounts on money market instruments
and on long-term debt instruments when required for federal income tax purposes.
Realized gains and losses from security transactions are reported on an         
identified cost basis.                                                          

USE OF ESTIMATES                                                                
The preparation of financial statements in conformity with generally accepted   
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes. 
Actual results may differ from those estimated.                                 

FUND SHARE VALUATION                                                            
Fund shares are sold and redeemed on a continuing basis at net asset value. Net 
asset value per share is determined daily as of the close of trading on the New 
York Stock Exchange on each day the Exchange is open for trading by dividing the
total value of the Fund's investments and other assets, less liabilities, by the
number of Fund shares outstanding.                                              

CUSTODY FEES                                                                    
Custody fees are reduced based on each Fund's cash balances maintained with the 
custodian. The amount is disclosed as a reduction of total expenses in the      
Statement of Operations.                                                        

FEDERAL INCOME TAXES                                                            
The Funds have complied with the special provisions of the Internal Revenue Code
available to regulated investment companies and, in the manner provided therein,
distribute all their taxable income, as well as any net realized gain on sales  
of investments and foreign currency transactions reportable for federal income  
tax purposes. Accordingly, the Funds paid no federal income taxes and no federal
income tax provision was required.                                              
  For the period October 31, 2001 to December 31, 2001, the Funds incurred net
realized capital losses for which each Fund intends to treat as having been     
incurred in the following fiscal year, in accordance with federal income tax    
regulations.                                                                    
        AMOUNT
        --------
Wanger U.S. Small Cap                  $2,475,314                               
Wanger International Small Cap          5,273,180                               
Wanger Twenty                              25,372                               
Wanger Foreign Forty                    1,160,587                               

   Wanger International Small Cap and Wanger Foreign Forty Funds have elected to
mark-to-market their investments in Passive Foreign Investment Companies        
("PFIC's") for federal income tax purposes. Gains relating to PFIC's are treated
as ordinary income for federal income tax purposes. A summary of transactions   
relating to PFIC's is as follows:                                               

                         WANGER           WANGER
                       INTERNATIONAL       FOREIGN
                        SMALL CAP          FORTY
                         -----------        --------
Cumulative unrealized appreciation                                              
on PFIC's recognized in prior years                                         
at December 31, 2000                  $1,766,924        $10,385             
Unrealized appreciation on PFIC's                                               
recognized for federal income tax                                           
purposes during 2001                          --             --             
Unrealized appreciation recognized in                                           
prior years on PFIC's sold during 2001        --             --             
                         -----------        --------
Cumulative unrealized appreciation on                                           
PFIC's carried forward at                                                   
December 31, 2001                     $1,766,924        $10,385             
                          ==========        ========

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--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS                                                   

DISTRIBUTIONS TO SHAREHOLDERS                                                   
Distributions to shareholders are recorded on the ex-date.                      
The amount and character of income and gains to be distributed are determined in
accordance with income tax regulations which may differ from generally accepted 
accounting principles. Reclassifications are made to the Fund's capital accounts
to reflect income and gains available for distribution (or available capital    
loss carryforwards) under income tax regulations.                               
 The following reclassifications have been made to the financial statements:

                                             INCREASE (DECREASE)
                                            ----------------------------
                          UNDISTRIB-
                                           UTED NET       ACCUMUL-
                                         INVESTMENT       ATED NET
                                PAID         INCOME       REALIZED
                          IN CAPITAL          (LOSS)          LOSS
                          ----------      ---------       --------
Wanger U.S. Small Cap           $(889,614)       $884,814        $4,800         
Wanger International Small Cap   (484,246)       (283,458)      767,704         
Wanger Twenty                     (54,495)         54,495            --         
Wanger Foreign Forty              (39,185)         31,943         7,242         

Net investment income, net realized gains (losses) and net assets were not      
affected by these reclassifications.                                            

The tax character of distributions paid during 2001 was as follows:       

        WANGER
                       INTERNA-         WANGER
      WANGER U.S.       TIONAL         FOREIGN
      SMALL CAP       SMALL CAP        FORTY
        --------        --------        --------
Ordinary Income         $275,386      $25,006,153       $876,913                
Long-Term Capital Gains       --       53,687,433        454,935                

At year-end, there were no significant differences between the book basis and   
tax basis components of net assets, other than differences in the net unrealized
appreciation (depreciation) in value of investments attributable to the tax     
deferral of losses on certain securities (wash sales), recognition of unrealized
gains on certain foreign investments (PFIC's), and foreign currency             
transactions.                                                                   

3. TRANSACTIONS WITH AFFILIATES                                                 
The Funds' investment advisor, Liberty Wanger Asset Management, L.P., ("WAM")   
furnishes continuing investment supervision to the Funds and is responsible for 
overall management of each Fund's business affairs. On November 1, 2001, Liberty
Financial Companies, Inc., the former parent of WAM, completed the sale of its  
asset management business, including WAM, to Fleet National Bank ("Fleet"). This
transaction resulted in a change of control of WAM and, therefore, an assignment
of WAM's investment advisory contract with the Trust to Fleet. Each Fund had    
obtained approval of a new investment advisory contract by the Trust's Board of 
Trustees and shareholders, which became effective upon completion of the sale.  
The new contract is identical to the prior contract in all material respects    
except for its effective and termination dates.                                 
   Each Fund pays WAM a monthly advisory fee based upon average daily net assets
at the following rates:                                                         

WANGER U.S. SMALL CAP                                                           
Average Daily Net Assets                                                        
For the first $100 million      1.00%                           
Next $150 million                .95%                           
In excess of $250 million        .90%                           

WANGER INTERNATIONAL SMALL CAP                                                  
Average Daily Net Assets                                                        
For the first $100 million      1.30%                           
Next $150 million               1.20%                           
In excess of $250 million       1.10%                           

WANGER TWENTY                                                                   
On average daily net assets              .95%                                   

WANGER FOREIGN FORTY                                                            
On average daily net assets             1.00%                                   

 The investment advisory agreement also provides that WAM will reimburse the
Funds to the extent that ordinary operating expenses (computed based on net     
custodian fees) exceed a percentage of average daily net assets.                

    Year ended
December 31, 2001   
Wanger U.S. Small Cap                     2.00%                                 
Wanger International Small Cap            2.00%                                 
Wanger Twenty                             1.35%                                 
Wanger Foreign Forty                      1.45%                                 

Certain officers and trustees of the Trust are also principals of WAM. The
Trust makes no direct payments to its officers and trustees who are affiliated  
with WAM. The Funds paid the following trustees' fees and expenses to trustees  
not affiliated with WAM:                                                        

    Year ended
December 31, 2001   
Wanger U.S. Small Cap                   $80,005                                 
Wanger International Small Cap           49,738                                 
Wanger Twenty                             2,217                                 
Wanger Foreign Forty                      3,720                                 

 Liberty Funds Distributor, Inc. ("LFD") serves as the principal underwriter
of the Trust and is a wholly owned indirect subsidiary of Fleet and receives no 
compensation for its services.                                                  

During the year ended December 31, 2001, the Funds engaged in purchase and
sales transactions with funds that have a common investment advisor (or         
affiliated investment advisors), common Directors/Trustees, and/or common       
Officers. These purchase and sale transactions complied with Rule 17a-7 under   
the Investment Company Act of 1940 and were as follows:                         

                 PURCHASES         SALES
-------------------------------------------------------------                   
(in thousands)                                                                  
Wanger U.S. Small Cap                   $2,777          $377                    
Wanger International Small Cap           6,266            --                    
Wanger Twenty                               --           742                    
Wanger Foreign Forty                        --            --                    

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--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS                                                   

4. BORROWING ARRANGEMENTS                                                       
The trust participates in a $250,000,000 credit facility which was entered into 
to facilitate portfolio liquidity. No amounts were borrowed under this facility 
for the year ended December 31, 2001. As of January 31, 2002, the credit        
facility was reduced to $150,000,000.                                           

5. FUND SHARE TRANSACTIONS                                                      
Proceeds and payments on Fund shares as shown in the statement of changes in net
assets are in respect of the following numbers of shares:                       

WANGER U.S. SMALL CAP                   Year ended            Year ended        
                         December 31, 2001     December 31, 2000

Shares sold                              5,138,267             4,316,917        
Shares issued in reinvestment                                                   
of dividend and capital gain                                              
distributions                            14,578             2,321,981     
-------------------------------------------------------------------------       
                                 5,152,845             6,638,898
Less shares redeemed                     2,930,905             2,169,780        
-------------------------------------------------------------------------       
Net increase in shares outstanding       2,221,940             4,469,118        

WANGER INTERNATIONAL                                                            
SMALL CAP                               Year ended            Year ended        
                         December 31, 2001     December 31, 2000

Shares sold                             30,073,056             7,990,696        
Shares issued in reinvestment                                                   
of capital gain                                                           
distributions                         4,496,664               797,188     
-------------------------------------------------------------------------       
                                34,569,720             8,787,884
Less shares redeemed                    29,121,025             6,394,060        
-------------------------------------------------------------------------       
Net increase in shares outstanding       5,448,695             2,393,824        

WANGER TWENTY                           Year ended            Year ended        
                         December 31, 2001     December 31, 2000

Shares sold                                770,791               559,378        
Shares issued in reinvestment                                                   
of capital gain                                                           
distributions                                --                23,417     
-------------------------------------------------------------------------       
                                   770,791               582,795
Less shares redeemed                       237,578               210,620        
-------------------------------------------------------------------------       
Net increase in shares outstanding         533,213               372,175        

WANGER FOREIGN FORTY                    Year ended            Year ended        
                         December 31, 2001     December 31, 2000

Shares sold                              5,410,460               797,617        
Shares issued in reinvestment                                                   
of dividend and capital gain                                              
distributions                           103,485                19,780     
-------------------------------------------------------------------------       
                                 5,513,945               817,397
Less shares redeemed                     5,084,229               237,976        
-------------------------------------------------------------------------       
Net increase in shares outstanding         429,716               579,421        

6. INVESTMENT TRANSACTIONS                                                      
The aggregate cost of purchases and proceeds from sales other than short-term   
obligations for the year ended December 31, 2001 were:                          

--------------------------------------------------------------------------------
               WANGER U.S.            WANGER          WANGER              WANGER
                SMALL CAP      INTERNATIONAL          TWENTY       FOREIGN FORTY
SMALL CAP 
PURCHASES     $115,789,111      $145,743,108       $18,141,698       $14,785,042
SALES           72,252,652       126,590,751        11,091,298        10,333,524

7. CAPITAL LOSS CARRYFORWARDS                                                   
At December 31, 2001, capital loss carryforwards available (to the extent       
provided in regulations) to offset future realized gains were as follows:       
                                                                           Total
                                        Year of Expiration          Capital Loss
                                          2008      2009            Carryforward
Wanger U.S. Small Cap                 $7,245,899  $23,984,483        $31,230,382
Wanger International                                                            
  Small Cap                                   --   55,963,354         55,963,354
Wanger Twenty                            624,930      588,474          1,213,404
Wanger Foreign Forty                          --    3,168,366          3,168,366

FEDERAL INCOME TAX INFORMATION (UNAUDITED)                                      
For the fiscal year ended December 31, 2001, the Funds did not designate any    
long-term capital gain dividends.                                               

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                                   Wanger Advisors Trust      2001 Annual Report
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS                                                  

To the Board of Trustees and Shareholders of                                    
Wanger Advisors Trust                                                           

We have audited the accompanying statements of assets and liabilities, including
the statements of investments of Wanger U.S. Small Cap, Wanger International    
Small Cap, Wanger Twenty and the Wanger Foreign Forty portfolios, comprising the
Wanger Advisors Trust, as of December 31, 2001, the related statements of       
operations, changes in net assets, and the financial highlights for the periods 
indicated therein. These financial statements and financial highlights are the  
responsibility of the Funds' management. Our responsibility is to express an    
opinion on these financial statements and financial highlights based on our     
audits.                                                                         

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and       
financial highlights are free of material misstatement. An audit includes       
examining, on a test basis, evidence supporting the amounts and disclosures in  
the financial statements and financial highlights. Our procedures included      
confirmation of investments owned as of December 31, 2001, by correspondence    
with the custodian and brokers or other appropriate auditing procedures where   
replies from brokers were not received. An audit also includes assessing the    
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our 
audits provide a reasonable basis for our opinion.                              

In our opinion, the financial statements and financial highlights referred to   
above present fairly, in all material respects, the financial position of each  
of the respective Funds of the Wanger Advisors Trust as of December 31, 2001,   
the results of their operations and changes in their net assets and financial   
highlights for the periods indicated therein, in conformity with accounting     
principles generally accepted in the United States.                             

                                                               ERNST & YOUNG LLP
Chicago, Illinois                                                               
February 7, 2002                                                                

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                                   Wanger Advisors Trust      2001 Annual Report
--------------------------------------------------------------------------------
MANAGEMENT OF WANGER ADVISORS TRUST                                             

The board of trustees serve indefinite terms of unlimited duration provided that
a majority of trustees always has been elected by shareholders. The trustees    
appoint their own successors, provided that at least two-thirds of the trustees,
after such appointment, have been elected by shareholders. Shareholders may     
remove a trustee, with or without cause, upon the vote of two-thirds of the     
Trust's outstanding shares at any meeting called for that purpose. A trustee may
be removed, with or without cause, upon the vote of a majority of the trustees. 
  The names of the trustees and officers of the Trust, the date each was first
elected or appointed to office, their principal business occupations and other  
directorships they have held during at least the last five years, are shown     
below. Each trustee serves in such capacity for each of the four series of the  
Trust. Mr. Wanger also serves as a trustee for each of the five series of       
Liberty Acorn Trust.                                                            

                                                        [Enlarge/Download Table]


NAME, POSITION(S) WITH    YEAR FIRST                                                                                   
 WANGER ADVISORS TRUST    ELECTED OR                                                                                   
      AND AGE AT         APPOINTED TO       PRINCIPAL OCCUPATION(S) DURING                                 OTHER       
    JANUARY 1, 2002         OFFICE                  PAST FIVE YEARS                                     DIRECTORSHIPS  
    --------------        ----------              -------------------                                   ------------   

TRUSTEES WHO ARE NOT INTERESTED PERSONS OF WANGER ADVISORS TRUST:                                                      
                                                                                                                       
   Fred D. Hasselbring, 60,   1994       Retail industry, general project development and business           None.     
   Trustee                               computer systems consultant; voice over specialist for                        
                                         industrial and institutional applications.                                    

   P. Michael Phelps, 68,     1994       Retired since January 31, 1998; prior thereto, vice president       None.     
   Trustee                               and corporate secretary, Morton International, Inc.                           

   Patricia H. Werhane, 66,   1998       Ruffin Professor of Business Ethics, Darden Graduate School         None.     
   Trustee                               of Business Administration, University of Virginia, since 1993;               
                                         Co-Director of the Olsson Center for Applied Ethics,                          
                                         Darden Graduate School of Business Administration,                            
                                         University of Virginia, since September 2001.                                 

TRUSTEES WHO ARE AN INTERESTED PERSON OF WANGER ADVISORS TRUST:                                                        

   Ralph Wanger, 67,          1994       President, chief investment officer and portfolio manager,          Liberty   
   Trustee and President*                Liberty WAM and WAM since July 1992; president, Liberty              Acorn    
                                         Acorn Trust; principal, WAM from July 1992 until September 29,       Trust.   
                                         2000; president, WAM Ltd. from July 1992 to September 29, 2000;               
                                         president and director, WAM Acquisition GP, Inc. since                        
                                         September 29, 2000; director, Wanger Investment Company plc.                  

OFFICERS OF WANGER ADVISORS TRUST:                                                                                     

   J. Kevin Connaughton, 37,   2001      Treasurer of the Liberty Funds and of the Liberty All-Star Funds      None.   
   Assistant Treasurer                   since December 2000 (formerly controller of the Liberty Funds                 
                                         and of the Liberty All-Star Funds from February 1998 to                       
                                         October 2000); treasurer of the Stein Roe Funds since                         
                                         February 2001 (formerly controller from May 2000 to                           
                                         February 2001); senior vice president of Liberty Funds Group                  
                                         since January 2001 (formerly vice president of Colonial Management            
                                         Associates since February 1998 to October 2000); senior tax manager,          
                                         Coopers & Lybrand, LLP from April 1996 to January 1998.                       

   Diane M. Dustin, 33,        2001      Blue sky administrator, Liberty Funds Group.                          None.   
   Assistant Secretary                                                                                                 

   Maureen E. Dustin, 42,      2001      Blue sky administrator, Liberty Funds Group.                          None.   
   Assistant Secretary                                                                                                 

   Kevin S. Jacobs, 40,        2001      Assistant vice president, Liberty Funds Group since                   None.   
   Assistant Secretary                   June 2000; senior legal product manager, First Union Corp.                    
                                         September 1999 to June 2000; prior thereto, senior legal                      
                                         product manager, Colonial Management Associates.                              

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                                   Wanger Advisors Trust      2001 Annual Report                                       
--------------------------------------------------------------------------------                                       
NAME, POSITION(S) WITH    YEAR FIRST                                                                                   
WANGER ADVISORS TRUST     ELECTED OR                                                                                   
      AND AGE AT         APPOINTED TO       PRINCIPAL OCCUPATION(S) DURING                  OTHER                      
    JANUARY 1, 2002         OFFICE                  PAST FIVE YEARS                     DIRECTORSHIPS                  
    --------------        ----------              -------------------                   ------------                   

OFFICERS OF WANGER ADVISORS TRUST (CONTINUED):                                                                         
                                                                                                                       
   Kenneth A. Kalina, 42,       1995     Chief financial officer, Liberty WAM and WAM since April               None.  
   Assistant Treasurer                   2000; assistant treasurer, Liberty Acorn Trust; fund controller,              
                                         Liberty WAM and WAM since September 1995; prior thereto,                      
                                         treasurer of the Stein Roe Mutual Funds; director, New Americas               
                                         Small Cap Fund.                                                               

   Bruce H. Lauer, 44,          1995     Chief operating officer, Liberty WAM and WAM since April               None.  
   Vice President, Secretary             1995; principal, WAM from January 2000 to September 29,                       
   and Treasurer                         2000; vice president, treasurer and secretary, Liberty Acorn                  
                                         Trust; director, Wanger Investment Company plc and New                        
                                         Americas Small Cap Fund.                                                      

   Charles P. McQuaid, 48,      1994     Director of research, Liberty WAM and WAM since July 1992;             Liberty
   Senior Vice President                 principal, WAM from July 1992 to September 29, 2000; trustee and       Acorn  
                                         senior vice president, Liberty Acorn Trust.                            Trust. 

   Robert A. Mohn, 40,          1997     Analyst and portfolio manager, Liberty WAM and WAM since               None.  
   Vice President                        August 1992; principal, WAM from 1995 to September 29, 2000;                  
                                         vice president, Liberty Acorn Trust.                                          

   Todd Narter, 37,             2001     Analyst and portfolio manager, Liberty WAM and WAM since               None.  
   Vice President                        June 1997; vice president, Liberty Acorn Trust; prior thereto,                
                                         product manager for Teradyne (1990-1997).                                     

   Christopher Olson, 38,       2001     Analyst and portfolio manager, Liberty WAM since January               None.  
   Vice President                        2001; vice president, Liberty Acorn Trust; prior thereto,                     
                                         director and portfolio strategy analyst with UBS Asset                        
                                         Management/Brinson Partners.                                                  

   John H. Park, 34,            1998     Analyst and portfolio manager, Liberty WAM and WAM since               None.  
   Vice President                        July 1993; principal, WAM from 1998 to September 29, 2000;                    
                                         vice president, Liberty Acorn Trust.                                          

   Vincent P. Pietropaolo, 36,  2001     Vice president and counsel, Liberty Funds Group since                  None.  
   Assistant Secretary                   December 1999; Associate, Morgan Lewis & Bockius,                             
                                         October 1998 to December 1999; product manager, Putnam                        
                                         Investments from April 1997 to October 1998; contracting                      
                                         attorney from May 1996 to April 1997.                                         

   Leah J. Zell, 52,            1994     Analyst, and portfolio manager, Liberty WAM and WAM since              None.  
   Vice President*                       July 1992; vice president, Liberty Acorn Trust; director and                  
                                         managing member of trust committee, Chai Trust Company.                       

 The address for Mr. Hasselbring is Four Wheaton Center, Suite 416, Wheaton,
IL 60187. The address for Mr. Phelps is 222 E. Chestnut Street, Apt. 10-B,      
Chicago, IL 60611. The address for Ms. Werhane is 104 Falcon Drive,             
Charlottesville, VA 22901. The address for Messrs. Wanger, McQuaid, Kalina,     
Lauer, Mohn, Narter, Olson, Park, and Ms. Zell is Liberty Wanger Asset          
Management, L.P., 227 West Monroe Street, Suite 3000, Chicago, Illinois 60606.  
The address for Messrs. Connaughton, Jacobs, Pietropaolo, and Mesdames Diane    
Dustin and Maureen Dustin is Liberty Funds Distributor, Inc., One Financial     
Center, Boston, MA 02111.                                                       
  Wanger's Statement of Additional Information includes additional information
about Wanger's trustees and officers. You may obtain a free copy of the         
Statement of Additional Information, or request any other information and       
discuss your questions about us, by writing or calling toll-free:               

Liberty Wanger Asset Management, L.P.                         
Shareholder Services Group                                    
227 West Monroe, Suite 3000                                   
Chicago, IL  60606                                            
(800) 4-WANGER (800-492-6437)                                 
www.wanger.com                                                

* Mr. Wanger and Ms. Zell are married to each other.                            

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TRANSFER AGENT,                                                                 
DIVIDEND DISBURSING AGENT                                                       
AND CUSTODIAN                                                                   
Liberty Funds Services, Inc.                                                    
P.O. Box 1722                                                                   
Boston, Massachusetts                                                           
02105-1722                                                                      

DISTRIBUTOR                                                                     
Liberty Funds Distributor, Inc.                                                 
One Financial Center                                                            
Boston, Massachusetts                                                           
02111-2621                                                                      

INVESTMENT ADVISOR                                                              
Liberty Wanger Asset                                                            
Management, L.P.                                                                
227 West Monroe Street                                                          
Suite 3000                                                                      
Chicago, Illinois 60606                                                         
1-800-4-WANGER                                                                  
(1-800-492-6437)                                                                

LEGAL COUNSEL                                                                   
Bell, Boyd & Lloyd LLC                                                          
Chicago, Illinois                                                               

INDEPENDENT AUDITORS                                                            
Ernst & Young LLP                                                               
Chicago, Illinois                                                               

This report, including the schedules of investments and financial statements, is
submitted for the general information of the shareholders of the Wanger Advisors
Trust. This report is not authorized for distribution unless preceded or        
accompanied by a prospectus.                                                    

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WANGER ADVISORS TRUST                                                           

ANN-02/348I-1201

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘N-30D’ Filing	Date	First	Last	Other Filings

Filed on:	3/1/02			NSAR-B
	2/7/02	42
	2/1/02	11	12
	1/31/02	41
	1/1/02	43	44
For Period End:	12/31/01	6	42	13F-HR, 24F-2NT, NSAR-B
	11/1/01	40
	10/31/01	39
	10/24/01	29		DEFS14A, PRES14A
	12/31/00	33	41	24F-2NT, N-30D, NSAR-B
	11/2/00	3
	9/29/00	43	44	485BPOS
	12/31/99	37	38	13F-NT, 24F-2NT, N-30D, NSAR-B
	2/2/99	37
	2/1/99	10	12
	1/31/98	43
	12/31/97	35	36	24F-2NT, N-30D, NSAR-B
	5/3/95	6	8
				List all Filings

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Filing Submission 0000891804-02-000495 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Wanger Advisors Trust – ‘N-30D’ for 12/31/01

On: Friday, 3/1/02 · For: 12/31/01 · Accession #: 891804-2-495 · File #: 811-08748

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Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1Filing Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents